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13 Jun 2013
US Retail Sales next: Impact on USD/JPY
FXstreet.com (Córdoba) - The US calendar is loaded for Thursday, with May Retail Sales as the main feature. While consensus is pointing for a 0.4% increase in sales versus the 0.1% printed in April, investors will be monitoring the numbers looking for cues ahead of the next FOMC meeting.
In this regard, Valeria Bednarik, chief analyst at FXstreet.com, notes that: "With the situation stubbornly slow since mid 2012 and investors dumping the idea of QE tapering anytime soon, the reading needs to come above 1.1% highest of the last two years, to trigger the 'end of QE fever' and see dollar advance firmly".
"A positive number above 0.5% but below 1.0% should favor the greenback temporarily, while a reading below the expected 0.4% should put the greenback under more selling pressure", Bednarik adds.
With USD/JPY trading at the 94.10 zone, a break below the 93.75 zone (daily lows) could take the pair to 93.00 with no much in the way. On the other hand, if the greenback strengthens on the news, 94.90 should offer immediate resistance, followed by the 95.90/96.00 area.
In this regard, Valeria Bednarik, chief analyst at FXstreet.com, notes that: "With the situation stubbornly slow since mid 2012 and investors dumping the idea of QE tapering anytime soon, the reading needs to come above 1.1% highest of the last two years, to trigger the 'end of QE fever' and see dollar advance firmly".
"A positive number above 0.5% but below 1.0% should favor the greenback temporarily, while a reading below the expected 0.4% should put the greenback under more selling pressure", Bednarik adds.
With USD/JPY trading at the 94.10 zone, a break below the 93.75 zone (daily lows) could take the pair to 93.00 with no much in the way. On the other hand, if the greenback strengthens on the news, 94.90 should offer immediate resistance, followed by the 95.90/96.00 area.