USD/JPY struggling below 112.00 handle after US data

The USD/JPY pair had a muted reaction to the US economic data and continued navigating in a narrow range below the 112.00 handle. 

According to the data released just a while ago, the Fed's preferred inflation gauge - Core PCE Price Index, recorded a rise of 0.2% m-o-m, taking the yearly rate to 2.1%. Other data showed, personal income rising 0.4% m-o-m during Feb., while personal spending remained subdued at 0.1% during the same period. 

The data did little to provide any fresh impetus and help the key US Dollar Index to break through the consolidative phase. Investors attention remains glued to the upcoming speeches by New York Fed President William Dudley and Minneapolis Fed President Neel Kashkari.

Meanwhile, the Chicago PMI and Revised UoM Consumer Sentiment index are also due for release of Friday and would be looked upon to grab some short-term trading opportunities. 

Technical outlook

"The bull flag pattern is a bullish continuation pattern, i.e. a break above flag resistance seen next week around 114.10 would signal continuation of the rally from 100.00 levels. The spot could then revisit yearly highs around 118.60 levels" writes Omkar Godbole, Analyst and Editor at FXStreet. 

"Bearish scenario - Only a weekly close below the flag support would trend reversal, i.e. the rally from 100.00 has ended at 118.66 (Dec 2016 high)."