USD/JPY steady near lows after US data

USD/JPY edged a tad lower but held above European session lows following the release of US personal income/spending data.

Data showed personal spending rose 0.4% in June, against 0.3% expected, but income rose only 0.2%, versus 0.3% of forecast. Meanwhile, the PCE price index, the Fed’s prefered gauge of inflation, rose by 0.9% YoY in June, below the central bank’s 2% target.

However, the US dollar barely reacted and continued to trade near 3-week lows against the yen, as main focus remains on Friday’s jobs report. Meanwhile, the Japanese currency has continued to benefit after the BoJ  recently announced stimulus package was perceived as insufficient by market.

USD/JPY technical levels

At time of writing, USD/JPY was trading at 101.53, 0.82% below its opening price. In terms of technical levels, next supports are seen at 101.44 (Aug 1 low), 101.00 (psychological level) and 100.53 (Jul 10 low). On the other hand, resistances line up at 102.82 (Aug 2 high), 103.78 (10-week SMA) and 104.13 (20-day SMA).