US dollar slides after sluggish spending and inflation numbers

USD/JPY testing session lows

The US dollar is near the lows of the day after a slight miss on PCE inflation and spending numbers.

USD/JPY tested the Asian low of 123.94 on the headlines but has held so far and bounced to 124.02. The numbers would have been a good excuse for a more sustained dip in the pair but there is some enthusiasm from buyers on any dip. The CFTC positioning data reflected that kind of enthusiasm as longs piled into the pair.

If it breaks, the initial target is 123.73 but look for the data and news to be the driver today. If USD/JPY can hold the line on soft data (like it did with PCE), then it might rocket on better numbers.

Update: That level held but only for 15 minutes and now it's given way to 123.86.