USD/JPY extends the recovery above 110.00

The greenback continues to trim earlier losses vs. the Japanese currency, now sending USD/JPY back above the 110.00 mark.

USD/JPY focus on US data, G7 meeting

The pair remains in a broad 109-110.50 range so far, with overnight JPY appreciation easing some momentum into the European morning. In addition, USD has managed to regain ground lost after bottoming out in the 109.40 in early trade, currently hovering over the 110.00 mark.

In the meantime, and ahead of the G7 meeting, market participants remain vigilant on rumours regarding BoJ intervention in the FX markets in order to alleviate JPY strength, with comments by Japan’s Asakawa signalling that such an action remains (well) on the table.

USD/JPY levels to watch

As of writing the pair is losing 0.13% at 110.04 facing the immediate resistance at 110.59 (high May 20) followed by 111.92 (high Apr.28) and finally 112.62 (100-day sma). On the flip side, a breach of 108.62 (20-day sma) would aim for 105.52 (2016 low May 3) and then 105.18 (monthly low Oct.2014).