USD/JPY rises to test daily highs after US Data

FXstreet.com (Córdoba) - The retreated of the USD/JPY from daily highs at 76.80 found support during the European morning at 76.55. Greenback started to recover from there and after the release of US economic data and ahead of Wall Street opening, where futures point to a positive opening, rose above 76.70, approaching daily highs. 

US Personal consumption expenditures increased 0.8% in July, beating market expectations of a 0.5% increment, while personal income rose at a 0.3% pace, slightly below the 0.4% expected, while the savings rate dipped to 5.0% in July from 5.5% in June. The pair finished unchanged last week around 76.50/60 after being unable to hold above 77.00. "The USD/JPY pair ended last week after heavy volatility after investors shifted their investments to the greenback, as Moody's downgraded Japan's credit rating to Aa3," the FXEmpire.com Analysis Team wrote. According to them market participants reduced the demand for the Yen following the latest credit rating downgrade for Japan by Moody's Investors Service to Aa3, "where investors saw that the greenback is safer than the yen at this time."