USD/JPY surrenders gains, around 112.50 ahead of Fedspeak

After climbing as high as the vicinity of 113.00 the figure during early trade, USD/JPY has now faded that spike and has returned to the mid-112.00s.

USD/JPY attention to Fedspeak

The pair keeps navigating the area of 3-week lows around 112.50 so far today, alternating gains with losses against the backdrop of a renewed bearish context including a 5-session negative streak.

Today’s better tone in US yields is lending some support to the buck, with the 10-year reference approaching the 2.49% level, coming up from yesterday’s drop to the boundaries of 2.46%.

Anyway, USD stays under heavy pressure, mainly after the FOMC showed no rush in accelerating its tightening pace at last week’s meeting.

Later in the session, USD will be in centre stage in light of the speeches by New York Fed W.Dudley (permanent voter, centrist), Kansas City Fed E.George (2019 voter, hawkish) and Cleveland Fed L.Mester (2018 voter, hawkish).

USD/JPY levels to consider

As of writing the pair is losing 0.03% at 112.53 and a break below 112.29 (low Mar.21) would aim for 111.67 (low Feb.28) and finally 111.57 (low Feb.7). On the upside, the next resistance lines up at 113.37 (100-day sma) ahead of 113.84 (55-day sma).