USD/JPY: The Greenback pushes higher as US Retail Sales beat expectations

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The US Dollar has turned higher again on Wednesday, to test resistance at the 148.00 psychological level, boosted by higher-than-expected US Retail Sales figures. Retail Consumption increased at a 0.6% pace in December, above November’s 0.3% increase and beating expectations of a 0.4% increase. Excluding automobiles, sales of other products rose at a 0.4% pace, twice as fast as the 0.2% forecasted by the market.

These figures confirm that the US economy remains resilient and dampens investors’ hopes of rate cuts in March. In this context, Fed Governor Christopher Waller’s comments, warning that it is too early to discuss rate cuts as inflation is still too high, are being reinforced. Later today, Fed officials Michelle Bowman, Michael Barr, and John Williams are expected to meet the press. The risk for the US Dollar is skewed to the upside, as the BoJ is widely expected to stand pat next week. The near-term trend remains bullish, after having breached the 61.8% retracement of the late 2023 sell-off. Immediate resistances are at 148.00 and 148.50. Supports lie at 147.11 and 146.35.


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