USD/JPY remains near 5-month lows, headed for second weekly decline

The USD/JPY pair remained under pressure throughout the week as geopolitical concerns weighed on the market sentiment. Despite a subdued trading action on Friday, the pair continued to inch lower after weak US macro data and refreshed its lowest level since November 16. At the moment the pair is at 108.62, 0.43% lower on the day.

The pair lost nearly 300 pips from the weekly top at 111.57 as the JPY was able to benefit from safe haven flows. The rising tension between the Russian Federation and the United States and the uncertainty surrounding North Korea's intentions forced investors to seek refuge. 

Today's data suggested that the inflation growth in the United States lost momentum as it recorded a drop in March after rising for 13 months in a row. 

• US: March advance monthly retail sales were $470.8 billion, 0.2% lower from February
• US: Real average hourly earnings increased 0.5% from February to March

Technical outlook

The pair faces the first support at 108.55 (Nov. 17 low) followed by 107.60 (Nov. 15 low) and 107 (psychological level). To the upside, resistances could be seen at 109 (psychological level), 109.40 (Apr. 13 high) and finally 110 (psychological level).