USD/JPY clocks one-week high, poised for weekly gain

A sharp rise in the US personal spending and core personal consumption expenditure strengthened the bid tone around USD and pushed the USD/JPY to a one-week high of 113.79 levels.

Hovers around 113.50

The pair trades around 113.50 and is on track to snap the three-week losing streak. The US data released this week beat the estimates and to some extent restored investor confidence in the US economy.

Durable goods orders, US Q4 preliminary GDP figure and now the personal spending; all beat estimates and pushed up 2-year as well as 10-year treasury yield higher, thereby making the greenback more attractive against the funding currency Yen.

The focus next week would be on the US labor market indicators – ISM PMI employment sub indices, ADP report, jobless claims and the non-farm payrolls report.

USD/JPY Technical Levels

The immediate resistance is seen at 114.48 (23.6% of 125.86-110.97), above which the spot could target 115.97 (Jan 20 low). On the other hand, a break below 112.53 (5-DMA) would open doors for a sell-off to 111.04 (Jan 24 low).

A sharp rise in the US personal spending and core personal consumption expenditure strengthened the bid tone around USD and pushed the USD/JPY to a one-week high of 113.79 levels.

(Market News Provided by FXstreet)