The US dollar remains better bid versus its Japanese counterpart in early moves, with USD/JPY heading towards previous highs, as the yen remains undermined despite the latest Japan’s retail sales figures coming in a touch better than market forecasts.

USD/JPY little changed post Japan’s data

Currently, the USD/JPY pair trades flat at 123.58, supported above key 123.50 levels. USD/JPY is seen struggling near the mid-point of the 123 handle at Tokyo open as bulls strive to keep the upper hand following the release of above estimates Japanese retail sales data.

Retail sales in the world’s third-largest economy rose an annual 0.9% in June, beating expectations for a 0.5% rise but still slowing sharply from a 3% spike in May. The report comes after the government recently downgraded its forecasts for consumer prices.

USD/JPY Technical Levels

To the upside, the next resistance is located 123. 85 (July 26 High) levels and above which it could extend gains 124.12 (July 24 High) levels. To the downside immediate support might be located at 123.01 (July 27 Low) below that at 122.57 (July 3 Low) levels.