USD/JPY sidelined around 104.00 ahead of Fedspeak

The Japanese Yen continues to depreciate vs. its American peer on Monday, with USD/JPY still in a consolidative theme just below the 104.00 handle.

USD/JPY attention to US data, Fedspeak

The pair is extending its consolidative theme in the upper-103.00s for the time being, coming down from last week’s tops in the 104.60 area as the upside momentum in the greenback seems to have lost some vigour.

Spot seems to be waiting for a stronger catalyst in order to break the current consolidation, while speculations on a Fed’s potential rate hike by end 2016 and scepticism surrounding the BoJ remain the leitmotif behind the pair’s price action.

Data wise in the US today, Markit’s flash Manufacturing PMI for the month of October is due followed by the Chicago Fed National Activity index.

In addition, speeches by NY Fed W.Dudley (permanent voter, neutral), St. Louis Fed J.Bullard (voter, neutral), Chicago Fed C.Evans (2017 voter, dovish) and J.Powell (permanent voter, neutral) would likely keep the focus on the buck.

In the positioning space, JPY speculative net longs have decreased to the lowest level since late July during the week ended on October 18 and according to the latest CFTC report.

USD/JPY levels to consider

As of writing the pair is up 0.14% at 103.93 facing the immediate hurdle at 104.64 (high Oct.13) ahead of 107.48 (high Jul.21) and finally 111.45 (high May 30). On the downside, a break below 103.20 (20-day sma) would open the door to 102.17 (55-day sma) and then 100.94 (low Sep.22).