USD/JPY erases daily losses

FXStreet (Córdoba) - USD/JPY managed to recover from lows and erased intraday losses during the American afternoon after dipping below 121.00 on the back of disappointing US retail sales data.

While US retail sales unexpectedly fell by third month in a row, a drop in jobless claims helped to limit dollar downside. USD/JPY climbed more than half a cent over the last hours and reached the 121.40 zone, erasing earlier losses.

USD/JPY hit a 7-year high of 122.02 on Tuesday, underpinned by growing speculation the Federal Reserve could begin hiking rates mid-year.

USD/JPY technical levels

In terms of technical levels, USD/JPY could find immediate resistances at 121.65 (daily high) and 122.02 (2015 high Mar 10). On the other hand, supports are seen at 120.68 (daily low) and 120.56 (200-hour SMA).