Chart: WorldWideMarkets Alpha Trader
The yen continued to weaken in Europe after the weaker than expected Japan Household Spending in July which fell to -0.2% versus the median estimate of +1.6%. The year-on-year data also fell to -5.9% versus the -3.0% estimate.
The slew of Japanese economic data yesterday, though some were positive, merely reinforced expectations of more Bank of Japan easing, perhaps before the year-end. Market participants appears to have focused on the fall of the consumption side.
Trading is expected to be subdued today as the U.S. participants remain on the sidelines for the long U.S. Labor Day weekend.
Support: 103.60, 103.40, 103.00 Option Expiring NY Cut
Resistance: 104.17, 104.50 Option Barrier (strikes to roll today)