Can USD/JPY Hit Fresh Highs?

Can USD/JPY Hit Fresh Highs?

The market has turned decidedly dollar bullish as traders are now anticipating a December rate hike. But USD/JPY has stalled at the 123.00 level as doubts linger. One key factor that would tip the pair over the edge would be some positive news on the US consumption front.

The US consumer comprises more than 75% of the US GDP and tomorrow’s US Retail Sales as well as U o M consumer survey will provide some very important insight into the strength of the US economy. The market is anticipating a big jump with Core Retail Sales rising to 0.4% from -0.3% the month prior. If the news proves positive it could lift USD/JPY through the key 124.00 resistance level as expectations for a rate hike will rise. If on the other hand the number misses once again, USD/JPY could quickly retreat to the lower end of the recent range at 121.00 as doubts begin to creep in.

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