US Data In Focus Again
The final tier-one data of the week is due over today’s US sessions with US Retail Sales for December due. Following the lacklustre response to stronger-than-expected CPI for December, it seems that the odds are stacked against a bullish reversal in USD. With this in mind, should data print at or below consensus today, we are likely to seen an acceleration in USD selling, further clearing out the order books. While this move might well prove to be a short term correction lower, for now the momentum is with sellers, so we go with the flow.
Where to Trade US December Retail Sales?
Reports that the BOJ have started discussing the logistics of rate hikes has caught the market offside a little, sparking some JPY bullishness. Given the current USD weakness, this makes USDJPY a strong candidate for further sales should USD move lower from today’s data. The break of the local trend line and the 114.70 level puts the focus firmly on a move down to the 112.72 level next, allowing bears to stay short while price holds below 114.70.