Japan’s October Retail Sales Decline

Japanese retail sales fell for the first time in three months in October, official data showed on Wednesday as car sales were reduced amid the current weak consumer demand.  These added to signs that Japan’s economy is entering a recession.

According to the Ministry of Economy Trade and Industry, the report showed that retail sales slumped to a seasonally adjusted annual rate of -1.2% from 0.4% in the previous month. Analysts previously forecast a fall of retail sales at annual rate of -0.7% last month.

Meantime, retail sales of fuels posted a second straight rise, up 0.7% in October after a 0.1% increase in September.

Retail sales of machinery and equipment including consumer electronics posted a 15th straight on-year drop. The pace of decline accelerated to -5.8% in October from -1.4% in September.

For the 24 hours to 23:00 GMT, the USD strengthened marginally against the JPY and closed at 82.16.In the Asian session, at GMT0400, the pair is trading at 82.12, with the USD trading marginally lower from yesterday’s close.

The pair is expected to find support at 81.80, and a fall through could take it to the next support level of 81.48. The pair is expected to find its first resistance at 82.32, and a rise through could take it to the next resistance level of 82.53.