USD/JPY flirting with highs near 114.20

The offered bias around the Japanese currency stays unabated today and is now helping USD/JPY to extend the advance further north of the 114.00 handle.

USD/JPY next target at 114.40

JPY gained extra selling pressure following overnight comments by BoJ Governor H.Kuroda, who reiterated the central bank’s commitment to keep monetary conditions (very) loose.

In the meantime, the greenback managed to gain some ground so far today following auspicious results from US non farm payrolls in June (222K), released last Friday.

However, yields in the US money markets, particularly the 10-year reference, are retreating from recent 8-week tops around the key 2.40% level, removing some tailwinds from the upside.

Further news around the Japanese safe haven comes from the speculative community, where net shorts have climbed to the highest level since early January during the week ended on July 3, as noted by the latest CFTC report.

USD/JPY levels to consider

As of writing the pair is gaining 0.25% at 114.19 facing the next up barrier at 114.39 (high May 11) seconded by 115.51 (high Mar.10) and finally 118.61 (2017 high Jan.3). On the downside, a break below 113.05 (10-day sma) would aim for 112.26 (61.8% Fibo of the May-June drop) and then 111.94 (21-day sma).