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USD/JPY retreats, unable to rise above 120.00

FXStreet (Córdoba) - USD/JPY trimmed gains during the last hours and recently fell to 119.68, the lowest since Asian hours. Earlier the pair climbed to 119.96, hitting the strongest level in two weeks.

Price holds near session lows ahead of US economic data. “Personal income and spending will be in focus early in a busy data week, with personal income expected to rise 0.5% following strong hourly wage growth in January. Spending is nevertheless expected to remain flat during the month as retail sales continue to disappoint despite consumer savings from gasoline prices. Core PCE is expected to rise a meager 0.1% during the month and to remain flat at 1.3% y/y, though we highlight some risk to the downside”, noted analysts from TD Securities. Also the february ISM manufacturing will be release, analysts from TD securities expect it to moderate just slightly to 52.8 from 53.5.

USD/JPY finds resistance near 120.00

The pair lost strength near 120.00. Also it was unable so far to consolidate above 118.80 where last week highs lie. If the US dollar manages to make a clear break on top of 120.00, the next resistance could be located around 120.45/50 (Feb 11, 12 high); above it would be trading at the strongest level in a month.

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