FxWirePro: USD/JPY consolidates 200-DMA breakout, focus on Retail Sales and FOMC minutes for further impetus

USD/JPY chart - Trading View 

USD/JPY was trading marginally lower on the day at 105.94 at around 04:35 GMT, outlook remains bullish.

U.S. dollar spiked past 200-DMA on Tuesday's trade to close above 106 handle for the first time since Oct 2020.

Spike in U.S. Treasury yields to one-year high kept the dollar buoyed. Growing stimulus hopes and jump in vaccinations and receding virus infections also favoring the mood.

Risks consolidate after Tuesday’s stellar performance, with focus on US Retail Sales data, FOMC minutes. 

FOMC minutes may challenge the mood, if conveying downbeat economic forecasts. Also, US trade tensions with China and Iran to challenge optimism. 

U.S. Retail Sales January are expected to rebound after three straight months of losses. Retail Sales are expected to gain 1% in January. 

The Retail Sales Control Group which approximates the consumption component of GDP, is projected to add 0.9% in January following a 1.9% decline in December.

Technical bias has turned bullish after 200-DMA breakout. Scope for test of 107.15 (converged 110W EMA and 50% Fib retracement).