USD/JPY remains static around 102.75-70 after US data

Receding global risk aversion provided the initial recovery momentum for the USD/JPY pair, which failed to gain further traction after the release of mostly in-line US economic data. Although the pair has erased all of its early losses but is currently trading absolutely flat around 102.70-75 band.

According to the data release just a short while ago, the Federal Reserve's proffered inflation gauge, core PCE price index, remained unchanged at 1.6% in May on yearly basis and was in line with expectations of 0.2% m-o-m. Personal spending for May also matched forecasts and came-in at 0.4%, while personal income fell short of expectations and rose 0.2% m-o-m.

The data provided little respite to the US Dollar that has been weakening through the European session as Brexit worries seems to subside. However, given the uncertainty surrounding the economic implication of the historic referendum, traders might continue to pile-up their bets on safe-haven currencies and hence, might restrict immediate swift recovery for the USD/JPY pair.

Technical levels to watch

Bulls would be aiming to reclaim 103.00 handle, above which the pair could extend the recovery to a previous support now turned resistance near 103.50 level. On the flip side, only a sustained weakness below 102.00 round figure mark, leading to a break below 101.50-40 support, would open room for a near-term depreciating move below 101.00 handle, towards the very important 100.00 psychological mark support.