USD/JPY finds buyers again near 112.50, US retail sales in focus

• DXY, USTs attempt recovery post-Fed sell-off
• The Yen supported by strong Japan’s manufacturing PMI.
• US retail sales – Up next.

The USD/JPY pair defends minor-recovery gains as we head towards early Europe, having stalled its post-FOMC rebound at 112.80 levels.

USD/JPY meanders near weekly lows of 112.48

The spot failed to sustain the renewed uptick and fell back towards the post-FOMC lows, as the Yen gained ground on the back of persisting moderate risk-aversion and stronger Japanese manufacturing PMI data released earlier today.  

Japan Nikkei Manufacturing PMI climbed from previous 52.8 to 54.2 in November

Markets remain risk-averse heading into a slew of central banking policy decision due later today, refraining to place any big bets on the prices.

However, the downside in the USD/JPY pair remains cushioned by a tepid bounce seen in the US dollar across its main peers, as Treasury yields edge higher across the curve. The 10-year Treasury yields trade at 2.365% percent versus the post-Fed low of 2.34%.

The pair will take cues from the USD dynamics and risk trends ahead of the US retail sales, import prices and jobless claims data slated for release in the NA session.

USD/JPY Technical View

Jim Langlands at FX Charts noted: “Although the daily charts are neutral, the short-term momentum indicators look heavy on Thursday, and further downside momentum could now take the dollar back to the recent low of 111.97. I am neutral today and direction is likely to be driven through the crosses following the various CB meetings ahead of the US Retail Sales. Selling rallies towards 113.00 currently seems the plan.”