USD/JPY keeps lows near 101.50, US data eyed

The Japanese currency remains on a firm footing on Tuesday, now taking USD/JPY to fresh lows in the 101.60/50 band.

USD/JPY in 3-week lows

The pair has dropped to fresh multi-week lows in the mid-101.00s after Japanese stimulus package failed to match market expectations today, as scepticism over the ability of the country to lift inflation figures remain everything but abated.

In fact, there was no room for surprises after the Government announced new measures worth more than ¥28 trillion, orientated to reach the 2% inflation target and to keep the moderate pace of economic growth.

Later in the NA session, USD will take centre stage in light of the release of June’s US PCE and Personal Income/Spending.

USD/JPY levels to consider

As of writing the pair is losing 0.62% at 101.69 facing the immediate support at 100.88 (78.6% Fibo of 99.08-107.48) ahead of 100.02 (low Jul.8) and then 99.08 (low Jun.24). On the flip side, a breakout of 103.28 (50% Fibo of 99.08-107.48) would open the door to 104.16 (20-day sma) and finally 105.67 (55-day sma).