USD/JPY plummets after US retail sales miss

The dollar weakened sharply following the latest string of US data, which showed retail sales held steady in July, raising concerns about economic growth in the second half of the year.   

USD/JPY lost almost 100 pips in a matter of  minutes as the dollar plummeted across the board. The pair bottomed out at 100.98 and it was last around 101.05, recording a 0.85% loss on the day.

US retail sales held steady at a seasonally adjusted $457.73 billion in July, below expectations of a 0.4% rise. Separated data showed PPI contracting 0.4% in July, while core prices dropped 0.3% in the same period, both missing expectations of minor increases.

USD/JPY levels to watch

On the downside, if USD/JPY breaks decisively below 101.00, next supports are seen at 100.67 (Aug 2 low) and 99.98 (Jul 8 low). On the other hand, bounces could find resistances at 101.60 (10-day SMA) and 102.26 (Aug 12 high).