USD/JPY Daily Outlook: US Retail Sales and Consumer Sentiment in Focus – ForexNews.PRO
Later in the session on Friday, retail sales and consumer sentiment figures will influence demand for the US dollar. Economists forecast retail sales to rise 0.5% month-on-month in July, following June’s 0.6% increase. Meanwhile, economists expect the Michigan Consumer Sentiment Index to rise from 61.7 in July to 62 in August.
Higher retail sales and a sharper pickup in consumer sentiment could temper expectations of multiple Fed rate cuts. Rising consumer confidence may indicate a sharper pickup in spending, fueling demand-driven inflation. Under this scenario, the USD/JPY pair could rise above the 200-day EMA. A break above the 200-day EMA may allow the bulls to target the 149.358 resistance level.
On the other hand, softer retail sales and waning sentiment may signal a more dovish Fed policy stance. Rising bets on multiple Fed rate cuts could drag the pair toward the 50-day EMA. A drop below the 50-day EMA may pave the way toward the crucial 145 support level.
Other stats include NY Empire State Manufacturing and industrial production numbers. However, these are likely to play second fiddle to the retail sales and consumer sentiment reports.
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