USD/JPY in the middle of the range around 112.00

The Japanese Yen is reverting part of the initial weakness vs. the greenback today, with USD/JPY now gravitating within the 112.00 area ahead of US data.

USD/JPY coming down from 113.00

The pair is retreating for the third session in a row today, reversing yesterday’s move to fresh tops in the 113.00 neighbourhood and somewhat ignoring the positive performance from US yields in recent sessions.

In fact, yields of the 10-year benchmark are now easing some ground after clinching fresh 6-week tops around 2.30% recorded earlier in the Asian session.

On the JPY-side, the BoJ remains in silent mode despite many central bank peers have signalled a shift to a more aggressive stance at the ECB Forum during the first half of the week.

On the data front, Japanese inflation figures came in on the soft side for the month of June, while the jobless rate tocked higher to 3.1% in May and advanced figures now expect industrial production to contract at a monthly 3.3% in May.

In the US data space, May’s personal income/spending is next on tap, followed by PCE and the final print for June’s consumer sentiment.

USD/JPY levels to consider

As of writing the pair is losing 0.20% at 111.97 facing the next down move at 111.60 (50% Fibo of the May-June drop) seconded by 111.30 (55-day sma) and finally 110.92 (20-day sma). On the other hand, a break above 112.93 (high Jun.29) would open the door to 113.07 (76.4% Fibo of the May-June drop) and then 114.39 (high May 11).