USD/JPY scrambling for a bounce back towards 114.00
The USD/JPY is trading up from Wednesday's new floor at 113.30, taking a minor bounce as the Greenback seeks to recoup intraday losses, with key US data due later on for Thursday.
The Dollar-Yen pairing is touching into 113.60 after Thursday's US inflation reading miss, with US Treasury yields declining and dragging the US Dollar with them, while Japanese GDP figures also showed a miss for growth projections.
A fresh chance at challenging the near-term trend will arrive later on Thursday, when the upcoming US trading window will be seeing US Retail Sales for October at 13:30 GMT, and median market expectations are hoping for a recovered showing for Retail Sales excluding cars, calling for a 0.5% reading versus the previous showing of -0.1%.
USD/JPY levels to watch
Plenty of buyers are still in the mix to bring the Dollar-Yen back up the boards, but as noted by FXStreet's own Valeria Bednarik, recent declines have left the Yen pairing primed for further declines if lopsided bearish interest continues to mount: "the USD/JPY fell to 113.29, a new weekly low trading a few pips above the level by the end of the US session. The 4 hours chart for the pair shows that it is still developing well above its 100 and 200 SMA, both around the 113.00 level and with the shortest advancing below the larger one as technical indicators resume their declines within negative levels, skewing the risk to the downside. Renewed selling interest below 113.20, now the immediate support should lead to a steeper decline, particularly if Asian shares follow the lead of their overseas counterparts."
Support levels: 113.20 112.85 112.50
Resistance level: 113.90 114.20 114.55