Retail Sales increased by +2.3% year-over-year in September, compared to analyst consensus of +3.3%. Industrial Production grew by +2.2%, while analysts expected that it would increase by +1.3%. The report did not have a material impact on market dynamics as traders have mostly focused on BoJ decision.

Both Fed and BoJ decided to take a pause, and USD/JPY traders remained in wait-and-see mode. The Japanese yen remains fundamentally weak, but bulls are worried that BoJ may intervene in case USD/JPY climbs towards the 160.00 level.

In case USD/JPY stays below the 50 MA at 157.57, it will head towards the 157.00 level. A move below 157.00 will push USD/JPY towards recent lows near 156.00.

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