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USD/JPY faded the spike to 106.80 on US data

  • Gains faltered near 106.80.
  • US yields advanced to 2.94%, fresh tops.
  • Philly Fed rose above consensus.

The Japanese Yen is extending the weekly upside vs. its American counterpart today, pushing USD/JPY to fresh lows in the 106.20/15 band earlier in the session.

USD/JPY still offered on USD-selling

After falling to the 106.20/15 zone, spot staged a comeback to the 106.80 region following a rebound in the demand for the buck. The bull run, however, lost momentum in those levels and forced the pair to return to the mid-106.00s.

In the meantime, spot continues to trade in tandem with yields in the key US 10-year note, which climbed to the boundaries of 2.95% handle – or multi-year tops – just to correct lower soon afterwards.

In the data space, USD remained apathetic following upbeat results from the Philly Fed index and producer prices, while industrial production unexpectedly contracted 0.1% MoM during last month.

USD/JPY levels to consider

As of writing the pair is losing 0.47% at 106.50 facing the next support at 106.16 (2018 low Feb.15) seconded by 102.54 (low Nov.3 2016) and finally 101.15 (low Nov.9 2016). On the other hand, a breakout of 108.51 (10-day sma) would expose 109.14 (21-day sma) and then 110.48 (high Feb.2).

Author

Pablo Piovano

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

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