The surprise weakness in the US retail sales has sent the USDJPY even lower in trading today. The pair has been under pressure as traders fear the lower commodity prices, and slower global growth. If the US is not a shining light, what next? S&P futures are down 27 points in pre-market trading. The Dow Futures are down 255 points. The 10 year yield is down at 1.79%.
The next target support comes in at 115.47-55. The 115.55 was the low from December. The 115.475 is the 38.2% of the move up from the October 2014 low (the last trend move higher). Below that level the 50% of the move up comes in at 113.51.
On the topside now (i.e.risk), look for corrections to find resistance against the 116.53-65 area. This is the 38.2-50% of the last move lower today. It also is a low from earlier today. I would look for sellers against this area on a rebound. Stay below keeps the sellers firmly in control. Above that, the 100 bar MA has been showing the way for the pari (see blue line in the 5 minute chart below).
How bad will it be for stocks today and going forward will be the question. The employment picture in the US is one thing. The retail sales picture today did not reflect that view.
USDJPY 5 minute
