** USD/JPY likely to extend downside movement to print Lower Low (LL)
** US retail sales, initial jobless claims missed expectations
USD/JPY fell on Friday as US retail sale data overshadowed an announcement by
In a bit of an unusual move,
The money in this special budget package will be spent on corporate subsidies and various construction projects. Today's announcement came days before
At the moment of writing, USD/JPY is being traded near 101.79 on Friday during the
On the downside, USD/JPY can find support ahead of 100.75, which is a major support level as demonstrated in the above chart. A break below 100.75 will confirm bearish bias and expose 100.30, the 200 DMA, and then 100.00 which is the psychological level and the 61.8% fib level.
Technical Indicators, particularly the Relative Strength Index (RSI) and the Commodity Channel Index (CCI), are gradually approaching oversold territory. Moreover, negative divergence can also be seen with MACD on the daily timeframe.
On Thursday, a report by the US labor department showed that initial jobless claims rose more than expectation during the first week of February. The number of people claiming unemployment benefits increased by 8,000 to 339,000. Analysts had forecasted a decline in jobless claims to 339,000. In addition, a separate report by the US commerce department revealed a slump in retail sales by 0.4% during last month The report also showed a revision in December sales by a 0.1% decline. Analysts were expecting no change in retail sales numbers. The downbeat economic reports spurred a huge sell-off in the US Dollar (USD) and the greenback fell across the board.