Investing.com - The U.S. dollar dropped to one-month lows against the yen on Friday, after the release of tepid Japanese data, as Thursday''s disappointing U.S. spending report added to expectations that the Federal Reserve could keep rates on hold for longer.
USD/JPY hit 101.31 during late Asian trade, the pair''s lowest since May 21; the pair subsequently consolidated at 101.39, shedding 0.32%.
The pair was likely to find support at 100.83, the low of May 21 and resistance at 101.83, the low of June 26.
Official data earlier showed that Japan household spending dropped by an annual rate of 8.0% last month, compared to expectations for a 2.0% decline, after a 4.6% fall in April.
Data also showed that Tokyo core consumer price inflation, which excludes food, remained unchanged at an annual rate of 2.8% in June, in line with expectations.
In addition, a government report showed that Japan retail sales fell 0.4% in May compared to a year earlier, less than the expected 1.8% decline and after a 4.4% drop in April.
Meanwhile, the dollar remained under pressure after data on Thursday showed that U.S. personal spending rose 0.2% last month, below expectations for an increase of 0.4%. Personal spending for April was revised to a flat reading from a previously reported decline of 0.1%.
Markets seemed to shrug off a report by the U.S. Department of Labor showing that the number of individuals filing for initial jobless benefits in the week ending June 21 declined by 2,000 to 312,000 from the previous week’s revised total of 314,000.
The yen was higher against the euro, with EUR/JPY slipping 0.22% to 138.16.
Later in the day, the U.S. was to release revised data on consumer sentiment.
Please LIKE our Facebook page - it makes us stronger: