USD/JPY muted below mid-113.00s after mixed US data

   •  Durable goods orders posted a growth of 1.3% in Nov. 
   •  Personal spending growth offsets weaker income; ore PCE matches estimates. 
   •  Action likely to remain subdued in pre-holiday session. 

The USD/JPY pair extended its consolidative price action through the early NA session and had a rather muted reaction to today’s US economic releases. 

Data released from the US showed, personal income grew less-than-expected, by 0.3% m-o-m in November, but was largely negated by better-than-expected personal spending data, showing a 0.6% m-o-m rise during the reported period. 

Meanwhile, the core PCE price index, the Fed’s preferred inflation gauge, matched consensus estimates and came-in to show 0.1% m-o-m rise, with the yearly rate at 1.5%. 

The US Dollar, however, moved little, with the pair stuck near the 113.40 region as bulls seemed unimpressed by durable goods orders growth, coming in at 1.3% for November as against 2.0% expected, with the core orders (excluding transportation items) contracting 0.1% m-o-m. 

Today’s US economic docket also features the release of New Home Sales data and Revised UoM Consumer Sentiment index, which is unlikely to provide any meaningful momentum in the pre-holiday lackluster trading session.

Technical levels to watch

On a sustained move beyond 113.65-75 area, the pair seems all set to aim towards surpassing the 114.00 handle and test 114.40-50 supply zone.

On the flip side, weakness below 113.20 level, leading to a subsequent break below the 113.00 handle, is likely to accelerate the slide back towards 112.35 strong horizontal support.