USD/JPY creeps higher, upside faltered near 107.70
|- The pair remains on a firm footing in the 107.80/70 area.
- Higher US 10-year yields sustaining the up move in spot.
- Japanese inflation figures matched forecasts in March.
USD/JPY keeps the weekly march north unabated so far on Friday, now sidelined in the upper end of the range in the 107.70/80 band.
USD/JPY looks to US money markets
The pair is up for the third session in a row so far today, although the bullish move seems to have run out of steam in the boundaries of the 107.80 region.
The ongoing rally in the pair has been largely on the back of rising yields in the US money markets, particularly the key 10-year benchmark, which clinched multi-week peaks yesterday above the 2.93% level, easing a tad since then and looking to stabilize in the 2.91% region.
The prevailing bias favouring the risk-associated space continue to encourage outflows from the Japanese safe haven, and therefore fuelling the upside in spot.
In the data space, Japanese inflation figures tracked by the National CPI rising at an annualized 1.1%, while prices excluding Food and Energy costs rose 0.9% on a year to March.
USD/JPY levels to consider
As of writing the pair is up 0.21% at 107.59 and a break above 107.78 (high Apr.13) would aim for 107.92 (high Feb.21) and then 110.48 (high Feb.2). On the downside, the immediate support lines up at 107.18 (10-day sma) followed by 106.69 (21-day sma) and finally 105.66 (low Apr.2).
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