FxWirePro: USD/JPY loses momentum but outlook is bullish
USD/JPY declined on Friday after underwhelming U.S. retail sales data and geopolitical worries spurred safe-haven demand. A risk-off sentiment gripped dollar this week after President Donald Trump unexpectedly fired his …
USD/JPY declined on Friday after underwhelming U.S. retail sales data and geopolitical worries spurred safe-haven demand.
A risk-off sentiment gripped dollar this week after President Donald Trump unexpectedly fired his FBI chief, the potential fallout of which could delay Trump's pro-growth policy.
Soft retail sales and monthly inflation data also affected the dollar, raising questions about whether the Federal Reserve could maintain its hawkish outlook for interest rates this year.
However, further downside in this pair is expected to be limited as strong support at 112.29 is set to limit further decline and bring rebound back to higher levels in the short term.
To the upside, the immediate resistance can be seen at 114.04, a break above this level would take the pair towards next resistance level at 114.35.
To the downside, immediate support can be seen at 113.19, a break below this level will open the door towards next level at 112.29.
