The USD/JPY pair falls toward 138.50 in response to optimistic Japan Retail Trade data
Despite stronger Retail Trade and Industrial Production figures from Japan, the USD/JPY exchange rate is edging lower. A rise in US Consumer Confidence and a hawkish Federal Reserve boosted the DXY. The US NFP is anticipated to come in at 300k, a decrease from the previous announcement of 528k.

After the publication of optimistic economic statistics, the USD/JPY pair is experiencing minor selling pressure and is falling toward 138.50. Annually, Japan's Retail Sales have increased to 2.4%, above predictions of 1.9% and the previous announcement of 1.5%. Additionally, monthly Retail Trade has increased to 0.8%. In the meantime, the Industrial Production report has exceeded estimates and the previous release by 1.8%, compared to -2.6% and -2.6%, respectively.
On a broader scale, the asset has remained in the hands of bulls as the US dollar index (DXY) has demonstrated an outstanding performance. After positive Consumer Confidence statistics and aggressive comments from Federal Reserve (Fed) policymakers, the DXY strives to reclaim its two-decade high at 109.29.
The Conference Board (CB) Consumer Confidence report climbed dramatically in August, reaching 103.2, a notable increase over July's 95.3 reading. Enhanced consumer confidence in the economy leads to an increase in retail consumption, which ultimately strengthens the local currency. In addition, the advice of New York Fed Bank President John Williams revitalized the DXY.
Fed Williams anticipates a rise in interest rates over 3.5 percent by the end of the year in order to halt the acceleration of inflation. He stated that the inflation rate could fall to between 2.5% and 3% the following year.
This week, investors will continue to focus on Friday's release of US Nonfarm Payrolls (NFP) data. Despite a stop in hiring by a number of tech companies and the effects of shrinking liquidity, it is anticipated that the figures on employment gains will remain adequate. The expected economic data is 300k, which is less than the previous release of 528k.
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