Retail sales and PPI were soft today and the USD weakened as traders’ expectations of a rate hike next week by the Fed diminished further.
The USDJPY rolled over – unable to find buyers above the Asian high and a countertrend short trade was taken with a 17 pip stop loss. The idea was for the pair to move down and test the the Asian session lows before the UK Close. This was a late session trade and the 102.35 level was challenging to break through. Once price broke it with 15 minutes left in the session, it opened the door to the downside but we exited at the UK Close.
Friday the market will be watching closely at the CPI numbers and the U of M Consumer Sentiment for further hints as to rate hike expectations.
Good luck with your trading!