USD/JPY uninspired by US data or comments from Fed’s Bullard

FXStreet (Córdoba) - USD/JPY entered a consolidation phase over the last hours after a brief appearance above the 121.00 level, shrugging off dovish comments from Fed’s Bullard and the latest series of US data.

US personal spending rose 0.3% in July, slightly below the 0.4% expected while personal income grew 0.4% in the same period, matching forecasts. The PCE price index, the Federal Reserve's preferred inflation measure, grew 0.1% MoM and 0.3%YoY. Core prices, which exclude food and energy, climbed 0.1% and 1.2% respectively.

Meanwhile, Fed’s Bullard stated that the FOMC does not like to move (rates) when there is volatility in the markets.

However, the dollar was little changed and continued to trade within its recent range. At time of writing, the pair was trading at 120.70, recording a 0.25% loss on the day.

USD/JPY levels to watch

As for technical levels, next supports are seen at 120.64 (Aug 27 low), 120.41 (50-hour SMA) and 120.00 (psychological level). On the flip side, resistances are seen at 121.39 (Aug 27 high), 121.68 (10-day SMA) and 122.00 (psychological level).