USD/JPY re-visits daily highs near 111.30

The better tone in the greenback is now lifting USD/JPY to the area of daily tops in the 111.30/40 band.

USD/JPY up on US yields

Spot reacted positively following hawkish comments by NY Fed and permanent voter William Dudley today, extending the rebound further north of the 111.00 handle.

In fact, yields of the US 10-year reference managed to climb as high as the vicinity of the 2.18% level, although receding some ground soon afterwards.

The pair has thus started its second consecutive week with gains so far, reverting Friday’s negative day following the steady stance from the Bank of Japan and the recent rate hike by the Fed.

News from the speculative community saw traders scaling back their JPY net short positions to 5-week lows during the week ended on June 13, according to the latest CFTC report.

In the data space, the BoJ minutes will be the salient point later in the week, while Fedspeak is expected to concentrate all the attention in an otherwise empty US docket.

USD/JPY levels to consider

As of writing the pair is up 0.36% at 111.31 facing the next hurdle at 111.42 (high Jun.16) followed by 111.60 (50% Fibo of the May-June drop) and finally 111.87 (100-day sma). On the other hand, a breakdown of 110.73 (200-day sma) would open the door to 110.69 (20-day sma) and then 109.25 (low Jun.15).