USD/JPY hangs closer to weekly lows, eyeing US macro data for fresh impetus
Having failed to hold early gains beyond mid-113.00s, the USD/JPY pair ran through some fresh offers and refreshed session lows near the 113.15 region, albeit recovered few pips thereafter.
The pair remained closer to previous session's weekly lows and was being weighed down by prevalent cautious sentiment around global equity markets, which was seen boosting the Japanese Yen's safe-haven appeal.
Adding to this, a Reuters news report, quoting comments from BOJ sources that the Japanese central bank is likely to raise its GDP growth forecasts at its upcoming meeting on July 20, further extended support to the Japanese Yen and collaborated to the pair's slide to session lows during the early European session.
• Sources: BOJ to raise growth forecasts, cut inflation outlook next week - RTRS
Despite the pullback, the pair has managed to hold above the 113.00 handle as traders refrained from placing aggressive bets ahead of the key US macro data - monthly retail sales and inflation figures, which could play an important role in determining the pair's next leg of directional move.
• US: CPI figures will be closely watched – Lloyds Bank
Technical levels to watch
A follow through retracement below the 113.00 handle now seems to drag the pair below weekly lows support near 112.90-85 region towards its next support near 112.35-30 region. On the upside, sustained up-move beyond mid-113.00s could assist the pair back towards reclaiming the 114.00 handle before eventually lifting it to multi-month highs resistance near 114.45-50 region.
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