USD/JPY meets supply again near 111.35 post-mixed Japan data dump
|The JPY bulls retain control following a slew of mixed Japanese economic data released last hour, fuelling fresh supply in USD/JPY, in an attempt to cap the recovery once again near 111.35 levels.
Japan’s national CPI, industrial production and household spending missed expectations, while the Japanese retails sales, jobs and Tokyo CPI figures came in stronger-than expectations. However, the Japanese macro news painted a mixed picture of the economy, leaving markets largely unimpressed.
The spot caught a fresh bid tone last hour, in response to the extension of broad USD, with the USD index now breaking higher above 99 handle. Markets looked past yesterday’s downbeat US dataflow, as focus shifts towards the much-awaited US advance Q1 GDP report and revised consumer sentiment data, which will wrap up an eventful week.
However, the upside attempts remain capped amid negative Japanese stocks, which boost safe-haven flows into the yen. Meanwhile, markets digest the Japanese data dump and look forward for fresh impetus from risk sentiment ahead of the US macro news due later in the NA session.
USD/JPY Technical levels
A break above 111.60 (Apr 27high) would expose 111.78 (4-week tops) and 112 (round figure). On the other hand, a breach of support at 111 (key support) could yield a test of 110.88 (5-DMA) and 110.01/00 (10-DMA/ zero figure).
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