USD/JPY hits fresh lows, eyes 119.00

FXStreet (Córdoba) - USD/JPY weakened after the release of US retail sales data and dropped from 119.70. Recently printed a fresh 6-day low at 119.18 and remains under pressure, trading around the lows.

According to the Commerce Department, in April retail sales remain unchanged from March, a number below expectations of a 0.3% increase. “This just really reinforces the view that a June hike isn’t happening and that September looks the more probable start point”, said James Knightley, Senior Economist at ING. Greenback fell across the board, as traders speculate that the Fed might delay the “liftoff”.

USD/JPY approaches 119.00

The pair is falling for the second day in a row and it has approached 119.00 where May lows lie. If it falls below it would be trading at the lowest level since April 30. The next support level might lie at 118.75 (April 27, 28 low) and 118.60 (April 29 low). On the upside, resistance is now seen at 119.55/60 (May 8 low) and 120.00.

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