USD/JPY turns negative, trading below 111.00 as investors wait for US data

The USD/JPY pair remained broadly within the Asian session trading range and is currently hovering around 111.00 handle as investors look forward to a slew of US economic data to get further clues on the Fed's rate-hike move.

During Asian session, the pair managed to recovery from session low of 110.80 and rose to a high of 111.35, shrugging-off better-than-expected household spending and industrial production data from Japan. 

The pair, however, struggled to extend the momentum and dropped back to 111.00 handle as traders seem reluctant in increasing bets ahead of the Fed's preferred inflation gauge, US core PCE price index, slated for release later today during NA session, and ahead of the ISM manufacturing PMI and jobs data for May, scheduled for release on Wednesday and Friday, respectively. 

Traders will also have a look at the release of April personal income and spending, S&P Case Shiller house price index for March, Chicago PMI and the Conference Board's consumer confidence for the month of May.

Technical outlook

A team of analysts at XM Investment Research notes, "RSI is now trending higher, suggesting there is scope for further upside. The next target is the April 28 high of 111.87, which if reached, then the market would have retraced all of the downleg from this 111.87 peak to the low of 105.54. The next resistance would come in at the March 29 high of 113.79."

"If prices fall back 110.50 and below the 50-day moving average, then the recent upside momentum would be at risk of fading and prices would fall back to the 109 handle with scope for further losses towards the 50% Fibonacci at 108.64."