USD/JPY fades 109.00 handle as US inflation and growth data came out softer than expected

• The Core Personal Consumption Expenditure for the first quarter came slightly lower-than-expected at 2.3% against 2.5% forecast.
• US first quarter GDP annualized came also slightly below expectations at 2.2% versus 2.3% forecast.
• USD/JPY is losing momentum and rejected the 109.00 handle 

The USD/JPY is facing a strong resistance at the 109.00 figure as the core Personal Consumption Expenditure price gauge, the favorite inflation indicator by the Federal Reserve Bank, came slightly lower-than-expected at 2.3% compared with 2.5% forecastwhile the US Gross Domestic Product (GDP) annualized for the first uarter of 2018 came also slightly below expectations at 2.2% versus 2.3% expected. This doesn't bode so well for US Dollar bulls who expect the Federal Reserve to raise rates based on rising inflation and growth.

In the kne-jerk reaction, the USD/JPY lost about 20 pips and is currently trading at around 108.80 up 0.08% on Wednesday. 

Earlier, the ADP employment change (Automatic Data Processing) also disappointed with 178K new jobs added in the US economy versus 190K expected by analysts. The ADP is the forerunner of the widely awaited Non-Farm Payroll data on Friday at 12:30 GMT. 

On the broader picture, the Japanese Yen has seen robust demand those last two weeks as the Italian political uncertainties, the US-China trade war and the cancellation of the US-North Korea summit have spurred investors to buy the Yen as a safe-haven currency.

Technical outlook:

Support is seen near the 108.00 handle which is the cyclical low and at 106.50 swing low in mid-April. To the upside, resistance is seen at the 109.00 handle and at 109.50 supply level.