The greenback is now picking up some pace vs. its Japanese counterpart, lifting USD/JPY to test fresh tops in the 112.75/80 band.
USD/JPY looks to US yields
Spot is so far reverting four consecutive sessions with losses, finding some support in overnight lows in the mid-112.00s and shedding around three cents from last week’s peaks in the 115.50 area.
In the meantime, the pair is gravitating around 3-week lows against the backdrop of poor performance from yields in the US money markets, where the 10-year reference has managed to retakes the 2.50% neighbourhood.
Later in the NA session, the Chicago Fed National Activity Index is due along with the speech by Chicago Fed C.Evans (voter, dovish). In Japan, Japanese Trade Balance figures are expected on Wednesday along with the minutes from the BoJ’s latest meeting.
JPY stays under pressure from the positioning side, as speculative net shorts increased to 7-week tops during the week ended on March 14, as per the latest CFTC report.
USD/JPY levels to consider
As of writing the pair is gaining 0.06% at 112.76 and a break above 113.29 (100-day sma) would expose 113.50 (high Mar.17) and then 113.94 (55-day sma). On the other hand, the next support lines up at 112.48 (low Mar.16) followed by 111.67 (low Feb.28) and finally 111.57 (low Feb.7).
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these securities. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Forex involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.