USD/JPY flat just below 109.00 ahead of US data

The greenback is alternating gains with losses during the first half of the week, now taking USD/JPY to the upper 108.00s.

USD/JPY focus on US yields, data

After bottoming out in levels last seen in mid-November 2016 in the 108.00 neighbourhood, the pair regained some traction on Monday and is now gearing up for a potential visit to the 109.00 handle.

Yesterday’s recovery in US yields has helped spot to bounce off the boundaries of the 108.00 handle, although a breakout of 109.00 the figure still remains elusive as the upside bias in yields seem to have run out of steam.

In the meantime, the speculative community has reduced its JPY net short positions to levels last seen in early December 2016 during the week ended on April 11, according to the latest CFTC report.

Later in the NA session, Housing Starts and Building Permits are due seconded by Industrial Production and Capacity Utilization for the month of March.

In japan, Trade Balance fiures are due on Thursday followed by Markit’s Manufacturing PMI on Friday.

USD/JPY levels to consider

As of writing the pair is losing 0.04% at 108.89 facing the next support at 108.52 (low Apr.14) followed by 108.11 (2017 low Apr.17) and finally 107.84 (61.8% Fibo of the November-December up move). On the other hand, a break above 109.89 (high Apr.12) would aim for 110.45 (20-days sma) and then 111.58 (high Apr.10).