USD/JPY offered, challenges 111.00 ahead of US data

The Japanese currency is recovering part of the sharp drop seen last week, with USD/JPY currently consolidating in the 111.00 neighbourhood.

USD/JPY gains limited near 112.00

Spot is reverting last week’s strong upside to the vicinity of the critical barrier at 112.00 the figure, snapping at the same time a positive 2-week streak amidst a broad-based USD selling.

Ahead in the session, US New Home Sales is next on tap, although market participants remain focused on the upcoming FOMC and BoJ meetings (Wednesday and Thursday, respectively).

USD/JPY levels to watch

As of writing the pair is losing 0.59% at 111.06 and a break below 110.00 (20-day sma) would open the door to 107.65 (2016 low Apr.12) and then 105.18 (monthly low Oct.2014). On the other hand, the next up barrier lines up at 111.88 (high Apr.25) followed by 111.95 (55-day sma) and finally 113.81 (high Mar.29).

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