- The pair moves to the upper end of the range near 111.30.
- The greenback stays bid with US 10-year yields bouncing off lows.
- US Producer Prices are coming in next on the docket.
The selling pressure around the Japanese safe have remains well and sound so far this week, with USD/JPY now managing to retake the area of recent tops in the vicinity of 111.30.
USD/JPY looks to trade, data, NATO
Spot is prolonging the positive performance so far this week, managing to retake the key barrier at 111.00 the figure and beyond after briefly testing daily lows in the 110.80/70 region, coincident with the 10-day sma.
The rebound in spot comes along a bounce in yields of the key US 10-year note from sub-2.83% area to the boundaries of 2.85%.
The Japanese currency remains on the defensive despite rising trade tensions between the US and China, particularly after recent threats of further US tariffs worth $200 billion.
In the US data space, US Producer Prices for the month of June will be the salient event seconded by the usual weekly report on US crude oil supplies by the EIA. Other than that, market participants will keep a close eye on headlines from the NATO Summit that kicks in today and the upcoming meeting between President D.Trump and E.Macron.
USD/JPY levels to consider
As of writing the pair is gaining 0.23% at 111.25 and a break above 111.35 (high Jul.10) would open the door to 111.41 (high May 21) and finally 111.50 (high Jan.18). On the downside, immediate contention emerges at 110.72 (10-day sma) seconded by 110.28 (low Jul.5) and then 110.13 (200-day sma).
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