USD/JPY drops below 111.00, US 10-yr-2-yr spread unchanged as Core PCE missed estimates
|The Dollar-Yen pair fell to a session low of 110.84 as the core personal consumption expenditure (Core PCE) declined to 0.7% q/q in Q2 vs. estimate of 0.9%.
The official data released in the US showed the economy expanded at annualised rate of 2.6% vs. expected print of 2.7%. The employment cost index came-in at 0.5% vs. 0.6% expected.
The soft inflation number is weighing over the US dollar, although the yield curve/spread between the 10-year yield and the 2-year yield remains largely unchanged around 95 basis points. This could be due to the upward revision of the previous quarter’s personal consumption (revised to 1.9% from 1.1%).
USD/JPY Technical Levels
A break above 111.20 (4/1 Gann fan line) would expose resistance at 111.56 (100-DMA) - 111.64 (50-DMA) and 112.03 (4-hour 200-MA). On the other hand, breach of support at 110.62 (Monday’s low) would open up downside towards 110.235 (May 2017 low) and 110.00 (psychological level).
An end of the day close below 110.62 (Monday’s Doji candle low) would signal the sell-off from the recent high of 114.36 has resumed.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.