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   “¢   A modest uptick in the USD/US bond yields helped gain positive traction at the start of a new week.  
   “¢   Softer core PCE price index was in sync with Friday’s GDP report and does little to provide an impetus.
   “¢   Personal income falls short of expectations but was offset by an unexpected jump in spending data.

The USD/JPY pair had a rather muted reaction to the latest US macro data and maintained its bid tone, above mid-111.00s through the early North-American session.  

Having shown some resilience below the very important 200-day SMA, the pair managed to regain some positive traction at the start of a new trading week and was further supported by a modest US Dollar uptick.  

With investors looking past Friday’s mixed US GDP report, a mildly positive tone around the US Treasury bond yields underpinned the greenback demand and turned out to be one of the key factors driving the pair higher.

The intraday positive move, however, lacked any strong bullish conviction amid the prevalent cautious mood around equity markets, which tends to boost the Japanese Yen’s relative safe-haven status against the buck.

On the economic data front, the core PCE price index – the Fed’s preferred inflation gauge, was largely on the softer side and was in sync with Friday’s GDP report, and did little to provide any meaningful impetus.

On the other hand, personal income data turned out to be rather weaker but was largely offset by a larger than expected jump in personal spending and remained supportive of the well bid tone surrounding the major.

It would now be interesting to see if the pair is able to capitalize on the positive move or once again fizzles out at higher levels as the focus remains on this week’s other key event/data risks, including  the FOMC decision on Wednesday.

Technical levels to watch