The U.S dollar has moved sharply lower against the Japanese yen, hitting 105.77 overnight, as U.S. President Donald Trump sought to impose fresh tariffs on the Chinese economy. The USDJPY pair also took as hit, as Retail Sales from the United States fell into negative territory for the second straight month, slumping lower by -0.1 percent. Moving into the European session, traders look toward the key 105.50 level for major support, whilst the 106.00 handle remains the most relevant short-term upside resistance level.
The USDJPY pair is intraday bearish while trading below the 106.45 level, further downside towards the 105.50 and 105.22 levels seems likely.
Should the USDJPY pair move above the 106.00 level, price-action may correct towards the pivotal 106.45 technical level.
