USD/JPY slides to mid-111.00s, reverses yesterday's up-move

The USD/JPY pair came under some renewed selling pressure on Friday and has now reversed all of its gains recorded yesterday. 

Spot ran through fresh offers after Japanese national CPI matched consensus estimates and recorded gains for the fourth consecutive month, rising 0.4% y-o-y. Meanwhile, national core CPI rose slightly-lower than expected 0.3% during April but was enough to convince markets that inflation is picking up. 

Adding to this, the prevalent negative trading sentiment surrounding Asian equity market provided an additional boost to the Japanese Yen's safe-haven appeal and also collaborated to the offered tone surrounding the major.

Investors now look forward to today's important US macro data - the preliminary US GDP print, Durable Goods Orders and revised UoM Consumer Sentiment Index, due later during the NA session. 

   •  US GDP tracking update: lowered Q2 GDP estimate by 0.3pp to 3.0% - Nomura

Technical levels to watch

Currently hovering around mid-111.00s, immediate support is pegged near 111.25 level, below which the slide could get extended towards 111.00-110.90 support area. A follow through weakness would turn the pair vulnerable to head back towards one-month lows support near 110.25 level en-route the key 110.00 psychological mark.

On the flip side, 111.80-85 region now seems to have emerged as immediate hurdle, which if cleared might trigger a short-covering rally towards mid-112.00s with some intermediate resistance near 112.10-15 area.