Forex: USD/JPY retraces losses on US session

FXstreet.com (Barcelona) - Held by the 94.00 support, the USD/JPY started to retrace its losses on the release of US data, first personal consumption expenditure then consumer sentiment. The pair moved up to 94.17.

Against analysts’ consensus of a drop from 77.6 to 72.5 in March, Reuters/Michigan Consumer Sentiment Index rose to 78.6 in February. The Core Personal Consumption Expenditure - Prices Index remained unchanged at 1.3% in February (YoY), with the monthly figure rising 0.1%, below consensus of 0.2%. Personal consumption expenditures rose 0.4%, with the annualized figure rising from 1.2% to 1.3%. Personal income beat consensus of 0.8% by rising 1.1% (from -3.6% in the previous month). Personal spending disappointed at 0.3%, while investors were pointing at 0.6%.

“Obviously the consolidation pattern above 93.50 low is still on the run and there is a risk of one more upswing to 95.10 resistance area before deeper drowning towards 92.80”, wrote Deltastock.com analyst Stoyan Mihaylov.