USD/JPY trimmed gains by about 20-pip to 113.30 levels after the data in the US showed US consumers spent less in February.
Lackluster reaction as treasury yields largely unchanged
A weaker-than-expected personal spending number failed to see a major reaction in the short duration treasury yields. Moreover, rise in the savings rate to one-year could result in a higher consumption in the near future. Consequently, USD sellers are hesitating to flex their muscle.
Negative core personal consumption expenditure is being ignored as well. The focus now is on the new home sales release and Dallas Fed manufacturing index release.
USD/JPY Technical Levels
The immediate hurdle is seen at 113.78 (rising trend line level), above which the pair could target 114.00 and 114.66 (50-DMA). On the other hand, a breakdown of immediate support at 113.06 (hourly 50-MA) would expose 112.70 (hourly 100-MA) and 112.32 (hourly 200-MA).
(Market News Provided by FXstreet)