Solid News
Retail Sales in Japan Showed an Unexpected Increase
1/31/2023 12:02 PMThe USD/JPY pair holds around 130.32, but the morning macro report corrected the recent negative trend.
Thus, one of the key indicators of consumer activity of the population, the volume of retail sales, in December increased by 3.8% from 2.5% last month, which exceeded the 3.0% increase predicted by analysts, while the indicator for large retail chains rose by 1.1%, which is much better than November's fall of 1.3%. Also, the unemployment rate for the same period was 2.5%, while the ratio of the number of vacancies to applicants remained unchanged at 1.35.
Quotes of the American currency slightly improved their positions, reaching 102.000 in the USD Index against the absence of important macroeconomic publications at the beginning of the week. The Conference Board Consumer Confidence Index, which is given a lot of weight in the US, consolidates to be released this evening, with analysts expecting the index to strengthen to 109.0 from 108.3 earlier, well below average estimates in 2021–2022, around 120.0 points.
On the daily chart, the trading instrument moves within a local downward corridor, approaching the resistance line at 131.00.
Technical indicators maintain a sell signal: fast EMAs on the Alligator indicator are below the signal line, despite the convergence, and the AO histogram forms rising bars below the transition level.
Resistance levels: 131.60, 135.40. | Support levels: 129.00, 126.30.