USD/JPY steady above 111.10 ahead of UK Brexit vote

• USD/JPY finds support above 111.00 and rises to 111.40.
• US dollar bounces versus yen despite lower US yields.  

The USD/JPY pair moved off daily lows during the US session despite US dollar weakness and further declines in US yields. It remains sideways for the day, moving below 111.50.  

The pair bottomed after the release of US CPI data at 111.09 and then bounced to the upside. It found resistance at 111.40 and as of writing trades at 111.25/30, marginally higher for the day.  

Attention continues to be on the UK where the Parliament will vote for PM May Brexit deal. The deal appears to be headed to a defeat. The pound is among the worst performers.  

Data from the US showed lower-than-expected US CPI core data. Tomorrow data to be released includes durable goods orders, PPI and constructions spending. On Asian hours, Chinese economic reports will be published (retail sales, industrial production, and fixed-asset investment).  

USD/JPY Levels to watch  

The pair is on its way to the second gains in-a-row, but the rally was capped by a key short-term dynamic resistance: a downtrend line that stands currently at 111.40. A break higher should clear the way to an extension to the upside.  

On the flip side, the key strong support is seen between 111.00 and 110.95: a slide below would add more bearish pressure, exposing last week lows.