USD/JPY stays bid, upside halted near 110.70

The greenback continues its march north this week, now pushing USD/JPY higher to the area of 110.70, where it seems to have found tough resistance for the time being.

USD/JPY attention to US PCE

The pair is advancing for the third consecutive session so far, rebounding strongly from Tuesday’s lows near 108.30 along with a moderate recovery of the greenback and yields in the US money markets.

In fact, yields of the key 10-year reference are now gravitating around the 2.15% area after bottoming out in sub-2.09% levels earlier in the week, levels last visited in November 2016.

Month-end flows, increasing selling bias around EUR/USD and diminishing geopolitical concerns has been collaborating with the upside, although the upcoming key US data should probe crucial for the continuation of the up move in the pair.

Later in the session, July’s PCE, initial claims, pending home sales and personal spending/income are all due in the US docket.

USD/JPY levels to consider

As of writing the pair is gaining 0.32% at 110.59 and a breakout of 110.95 (high Aug.16) would aim for 111.20 (55-day sma) and then 111.39 (50% Fibo of 114.51-108.27). On the other hand, the next support emerges at 109.80 (21-day sma) followed by 109.74 (23.6% Fibo of 114.51-108.27) and finally 109.55 (10-day sma).