USD/JPY keeps pushing higher, 112.00 on the radar

The selling pressure around the Japanese currency stays unabated at the beginning of the week, lifting USD/JPY to fresh tops around 111.90.

USD/JPY now looks to US data

The pair is extending its recent upside, always backed by the performance of yields in the US money markets, with the 10-year benchmark now retreating from daily highs just below the 2.31% level.

Adding to the pair’s up move, the US Dollar Index has managed to revert at least part of the recent pullback and is now hovering over the key 99.00 handle, posting moderate gains for the day so far.

Data wise, Manufacturing PMI in the Japanese economy eased a tad to 52.7 from 52.8 for the month of April, while the ISM Manufacturing, Personal Income/Spending, inflation figures tracked by the PCE (Fed’s preferred gauge) and the speech by Treasury Secretary Steve Mnuchin are all due later in the NA session.

From the speculative community, JPY net shorts have retreated to the lowest level since late November, according to Friday’s CFTC report for the week ended on April 25.

USD/JPY levels to consider

As of writing the pair is gaining 0.28% at 111.84 and a surpass of 112.20 (high Mar.31) would expose 112.68 (61.8% Fibo of the March-April drop) and finally 113.39 (100-day sma). On the other hand, the next support aligns at 111.04 (low Apr.28) followed by 110.94 (38.2% Fibo of 115.51-108.11) and then 110.85 (low Apr.26).