USD/JPY recovery extends to 107.50 ahead of US CPI
- Spot comes up afgter testing 106.80.
- US yields near 2.84%, daily tops.
- US calendar in the limelight later.
After recording fresh 2018 lows in the 106.80 region during early trade, USD/JPY somehow managed to grab some buying attention and has regained the 107.00 handle and above afterwards.
USD/JPY now looks to US CPI
After clinching fresh 2018 lows in the 106.80 region during early trade – levels last seen in November 2016 – the buying interest surrounding the Japanese safe haven currency eased somewhat, allowing the subsequent rebound beyond the critical 107.00 handle.
Along with the pair’s rebound, yields of the US 10-year reference are staging a comeback from lows in the vicinity of the 2.80% limestone, finding some resistance in around 2.85%.
Later in the session, spot will be in centre stage in light of the upcoming US inflation figures for the month of January along with the performance of retail sales during the same period.
USD/JPY levels to consider
As of writing the pair is losing 0.60% at 107.17 facing the next support at 106.84 (2018 low Feb.14) seconded by 102.54 (low Nov.3 2016) and finally 101.15 (low Nov.9 2016). On the other hand, a breakout of 108.90 (10-day sma) would expose 109.41 (21-day sma) and then 110.48 (high Feb.2).