USD/JPY sticks to daily gains above mid-110s despite USD weakness
|- US Dollar Index extends losses to 94.30.
- An improved market sentiment weighs on safe-havens in the NA session.
- Wall Street records strong gains.
Despite the broad-based selling pressure witnessed on the USD, the USD/JPY pair preserves its daily gains and remains on track to end the week with a gain over 150 pips. As of writing, the pair was trading at 110.77, up 0.25% on the day.
Earlier today, the data from the United States showed that personal spending increased 0.2% in May to fall short of the market estimate of 0.4%. Moreover, the final reading of the UoM's Consumer Sentiment Index dropped to 98.2 from 99.3, highlighting that Trump administration's trade policy was causing concerns among consumers.
Although the annual core-PCE price index rose to 2% and the Chicago PMI reached its highest level in six months at 64.1, the greenback struggled to find demand. Moreover, position adjusting and profit taking could be also putting the buck under some selling pressure in the last trading day of the first half of the year. At the moment, the US Dollar Index is down 0.75% on the day at 94.30.
There won't be any other data releases in the remainder of the day and the pair is likely to remain in a tight range in the last hours. On a monthly basis, the pair is up nearly 300 pips.
Technical outlook
The pair could encounter the first support at 110 (psychological level) ahead of 109.60 (200-DMA) and 109.15 (Jun. 8 low). On the upside, resistances could be seen at 110.90 (Jun. 15 high), 111.40 (May 21 high) and 112 (psychological level). On the daily chart, the RSI indicator hasn't reached the 70 mark yet, suggesting that the pair could extend its gains before making a technical correction.
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.