USD/JPY upside stalled near 113.20

The Japanese Yen is posting moderate losses vs. its American counterpart at the beginning of the week, sending USD/JPY to the area of daily highs  in the 113.15/20 band.

USD/JPY looks to FOMC, data

The pair is advancing for the first time after three consecutive pullbacks, regaining the critical 113.00 handle and above while at the same time recovering the smile and bouncing off Friday’s multi-day lows in the vicinity of 112.60.

The buck – tracked by the US Dollar Index - is alternating gains with losses today, although the weakness around the Japanese safe haven seems to be quite extended.

It will be a very light week on the Japanese data front, leaving the bulk of the attention to the USD dynamics, with the FOMC minutes on Wednesday taking centre stage and seconded by several Fed speakers throughout the week.

In the positioning space, JPY speculative net shorts have been trimmed to levels last seen in early December in the week to February 14 according to the latest CFTC report.

USD/JPY levels to consider

As of writing the pair is advancing 0.27% at 113.15 facing the initial hurdle at 114.36 (high Feb.16) followed by 114.97 (high Feb.15) and finally 115.39 (high Jan.27). On the flip side, a breakdown of 112.58 (low Feb.17) would aim for 112.03 (low Feb.2) and then 111.57 (low Feb.7).