USD/JPY muted near 104.60 on US data

USD/JPY has barely moved after the release of US data, trading with marginal gains in the 104.60 region.

USD/JPY retreats from multi-day peaks

The pair is reverting two consecutive days of gains after Tuesday’s rejection from the boundaries of the 105.00 handle, although it manages to keep the trade in 3-week tops in the upper-104.00s for the time being.

Spot remained apathetic after Export Price index rose more than estimated 0.8% MoM in June, while Import Price index has surprised to the downside, rising 0.2% MoM vs. a 0.5% gain forecasted. Later in the NA session, FOMC’s Kaplan is due to speak ahead of the Fed’s Beige Book.

Adding to the selling bias, JPY met some buying interest after Japanese officials Suga and Hamada have somewhat downplayed the idea of ‘helicopter money’, although they have both stressed that monetary and fiscal stimulus would be effective.

USD/JPY levels to consider

As of writing the pair is retreating 0.12% at 104.56 facing the immediate support at 100.02 (low Jul.8) followed by 99.08 (2016 low Jun.24) and then 96.55 (monthly low Oct. 8 2013). On the other hand, a breakout of 105.27 (50% Fibo of June down move) would aim for a test of 106.43 (55-day sma) and finally 106.85 (high Jun.24).