USD/JPY keeps the trade above 111.00 ahead of Fedspeak

The Japanese Yen is extending its weekly momentum vs. the greenback on Friday, with USD/JPY hovering over the 111.20 region.

USD/JPY attention to Fedspeak

The pair is losing ground since Tuesday, coming down from a test of the 100-day sma in the 111.80 region amidst a soft performance from US yields, particularly the 10-year reference.

In fact, yields of the UST 10-year have been trading in a choppy fashion so far this week, with the upside struggling around 2.20% and support located near 2.14%. Mixed comments from Fed-speakers earlier in the week have weighed on the buck, prompting the US Dollar Index to recede from tops in the critical 97.50 region.

In the data space, Japanese advanced manufacturing PMI is expected to tick lower to 52.0 in June. In the US, Markit’s flash manufacturing/services PMI, new home sales and speeches by St. Louis Fed J.Bullard (2019 voter, centrist), Cleveland Fed L.Mester (2018 voter, hawkish) and J.Powell (permanent voter, centrist) are next on tap, keeping the focus on the greenback.

USD/JPY levels to consider

As of writing the pair is losing 0.07% at 111.25 facing the next support at 111.06 (55-day sma) followed by 110.92 (low Jun.22) and then 110.65 (20-day sma). On the other hand, a breakout of 111.60 (50% Fibo of the May-June drop) would open the door to 111.81 (high Jun.21) and finally 111.82 (100-day sma).