USD/JPY slumps to 112.50 post-US CPI

The greenback is now accelerating the downside vs. its Japanese peer following US data releases, with USD/JPY plummeting to fresh lows in the mid-112.00s.

USD/JPY weaker on data

Spot met a wave of selling pressure after retail sales and inflation figures have come in below initial estimates for the month of June.

In fact, inflation measured by the CPI showed consumer prices rose at an annualized 1.6% and came in flat on a monthly basis. Prices stripping food and energy costs rose 1.7% over the last twelve months and 0.1% inter-month.

Further USD-weakness came in from the disappointing figures from retail sales, where headline sales contracted 0.2% MoM in June. Sales excluding the Autos sector also contracted 0.2%, both prints missing consensus.

The pair plummeted below 112.50 in the wake of the release in tandem with US yields, with the 10-year reference dropped to lows in the sub-2.30% zone.

USD/JPY levels to consider

As of writing the pair is retreating 0.69% at 112.50 and a break below 111.94 (55-day sma) would aim for 111.77 (200-day sma) and then 111.44 (low Jun.27). On the other hand, the next up barrier is located at 113.40 (10-day sma) seconded by 114.51 (high Jul.11) and finally 115.51 (high Mar.10).