The U.S dollar has retreated sharply against the Japanese yen, following much better than expected Japanese economic data and overall weakness in the greenback. The USDJPY has so far found intraday support just below the 112.70 level, but remains under selling pressure around the 112.80 region. Better than expected Japanese Industrial Production and Retail Sales figures helped boost the Japanese yen, while falling U.S bond yields pushed the greenback lower. Traders now look to high-impact U.S economic data, and the key 92.60 level on the U.S dollar index.
The USDJPY pair is likely to remain intraday bearish while trading below the 113.10 level, further declines towards the 112.70 and 112.40 levels seem possible.
Should the USDJPY pair find buying demand above the 113.10 level, upside resistance is found at the 113.30 and 113.60 levels.
