- The pair keeps gains above the 110.00 handle on Tuesday.
- US 10-year yields extend the consolidation near 2.96%.
- US May’s CPI next of relevance in the NA calendar.
After advancing to session highs in the mid-110.00s in early trade, USD/JPY has now returned to the 110.20 region ahead of key US releases.
USD/JPY now looks to US data
Spot clinched fresh 3-week tops in the 110.50 region on Tuesday amidst a robust pick up in the risk-on trade, all in response to the auspicious meeting between President Trump and North Korea’s leader Kim Jong-un earlier in the day in Singapore.
The up move in the pair has been despite yields of the key US 10-year note remain sidelined within a tight range against the backdrop of increasing cautiousness on the imminent FOMC meeting (Wednesday).
Later in the session, the pair should be vigilant on the release of US inflation figures tracked by the CPI for the month of May. In Japan, the salient event will be the BoJ monetary policy meeting, although traders expect it to be a ‘non-event’.
USD/JPY levels to consider
As of writing the pair is gaining 0.18% at 110.25 and a break above 110.49 (high Jun.12) would open the door to 111.39 (high May 21) and finally 111.50 (high Jan.18). On the other hand, the immediate support aligns at 109.66 (10-day sma) seconded by 109.19 (low Jun.8) followed by 108.77 (55-day sma).
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