USDJPY continues fall to new session lows
The USDJPY continues to fall after the retail sales disappoint. The control group which feeds into the GDP saw the number come in at 0.0% vs +0.2%. The revision shaved a healthy amount off of the January number (from +0.6% to +0.2%). What was a great start to 2016 (+0.6% control group) now looks not so great (with +0.2% and 0.0%). Expect to see moves to the downside in the Atlanta GDP estimator later today.
Technically, the USDJPY remains -in the grand picture - within the range extremes but with a negative bias once again. Looking at the hourly chart, the pair is trading below the 50% of the move up from the Feb 24 low (at 1.1279) and is trading below trend line support at 112.71. Earlier today, the price fell below the converged 100 and 200 hour MAs (blue and green lines) and used those MA as a ceiling before moving lower and away.
The low for the day so far is short of the low from ECB Thursday at 112.59. Move below that target is needed to push toward the 61.8 at 112.377 and the recent swing lows at 112.21 and 112.15.
The EURUSD is trying to extend above the high for the day at 1.1120. The range is only 49 pips or so. As a result there is room to roam to the upside.
The GBPUSD is off the lows.