USD/JPY stays bid near 110.50 post-US data

The upbeat momentum in USD/JPY remains unchanged on Tuesday, currently meandering the upper end of the daily range in the 110.50/60 band.

USD/JPY now eyes US ISM

The pair is extending its daily up trend to the 110.50/60 band after inflation figures in the US economy tracked by the PCE rose more than expected in June at an annualized 1.5%.

On the not-so-bright-side, personal income and personal spending disappointed expectations, coming in flat on a monthly basis and expanding 0.1% inter-month, respectively.

The daily upside stays supported by the spike in yields of the US 10-year reference to levels above 2.31% in the wake of the US PCE, which remain the exclusive driver behind the pair’s price action.

Later in the NA session, Markit’s manufacturing PMI is next on tap followed by July’s ISM manufacturing, which is expected at 56.5 for the month of July.

USD/JPY levels to consider

As of writing the pair is gaining 0.17% at 110.45 and a break above 110.99 (61.8% Fibo of 108.81-114.51) would aim for 111.18 (10-day sma) and finally 111.56 (55-day sma). On the flip side, the immediate support aligns at 110.16 (76.4% Fibo of 108.81-114.51) seconded by 110.01 (low Aug.1) and finally 108.81 (low Jun.14).