Japanese Tertiary Industry Index came in negative for December but beat expectations, while US Retail Sales and Michigan Consumer Sentiment will close the week. USD/JPY could test 110.30, according to Valeria Bednarik from FXStreet.
“Overnight, Japan published December Tertiary Industry Index, which came in at -0.2%, better than the -1.6% expected. To close the week, the US will publish January Retail Sales, foresee up by 0.3%, and the preliminary estimate of the Michigan Consumer Sentiment Index for February, seen at 99.5 from the 99.8 previous.”
“Technical indicators head nowhere around their midlines.”
“However, in the daily chart, the positive momentum remains, skewing the risk toward the upside. A critical resistance level comes at 110.28, this year high, and the level to surpass to confirm a bullish continuation heading into the weekend.”
“Resistance levels: 109.95 110.30”