USD/JPY struggles around 114.70 ahead of US data

Pablo Piovano FXStreet

USD/JPY is navigating a narrow range on Thursday, alternating gains with losses just below the 115.00 up barrier.

USD/JPY attention to US results

The pair is struggling to extend Wednesday’s correction higher to levels just shy of the 115.00 handle, backed by a renewed buying interest around the buck after supportive comments by Chairwoman Janet Yellen.

Yellen emphasized the solid health of the US economy, which could prompt the Federal Reserve to accelerate its tightening pace in the next months. Yellen also added that the economy remains close to the Fed’s goals in employment and inflation.

In the meantime, spot remains well correlated to the performance of the US 10-year yields, which are currently looking to extend the rebound from recent lows.

Later in the NA session, US Initial Claims, Building Permits, Housing Starts, the Philly Fed index and the EIA’s report on crude oil inventories are all due in the US docket.

USD/JPY levels to consider

As of writing the pair is up 0.01% at 114.67 and a break above 114.97 (high Jan.19) would open the door 115.53 (high Jan.12) and then 116.00 (20-day sma). On the other hand, the next support is located at 113.67 (55-day sma) ahead of 112.95 (low Jan.18) and finally 111.98 (38.2% Fibo of the November-December 2015 up move).

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

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