USD/JPY retreats sharply and approaches 118.00

FXStreet (Córdoba) - USD/JPY reversed sharply and dropped more than 70 pips during the last hour and currently trades at 118.30, as it moves toward daily lows. Earlier, after the release of the Reuters / Michigan Consumer Sentiment Index, that rose to the highest level since January 2007, the pair climbed to 119.06, approaching daily highs.

But greenback failed to hold above the 119.00 zone and as US government bond reached fresh highs, it reversed falling back below 118.50.

USD/JPY technical outlook

The pair is moving with a bearish bias on Friday, but is still supported by a short term ascendant trendline originated at Thursday’s low, that stands at 118.10/15.