USD/JPY retreats from tops around 114.30, US GDP eyed

• Spot off highs in tandem with US yields.
• Triple-tops near 114.50 keep capping the upside.
• US Q3 GDP next on tap in the US docket.

USD/JPY lost some upside momentum in the 114.30 area, as yields of the key US 10-year reference are now easing from daily peaks.

USD/JPY focused on US data

After climbing as high as the 114.30 region, the pair has sparked a correction lower in line with the knee-jerk in yields of the US 10-year, which have returned to the 2.45% neighbourhood after testing tops just below the 2.48% mark.

USD stays buoyant following the dovish message from the ECB at its meeting on Thursday, while the recent vote of the budget blueprint for FY 2018 at the US House of Representatives provided extra support to the buck.

On the data front, inflation figures in Japan tracked by the Tokyo Core CPI rose above estimates 0.6% on a year to October, while the National Core CPI gained 0.7% YoY in September.

In the US, flash GDP figures for the third quarter are to be published later in the NA session seconded by October’s final print for US consumer sentiment.

USD/JPY levels to consider

As of writing the pair is gaining 0.09% at 114.07 and a break above 114.32 (high Oct.27) would open the door to 114.39 (high May 11) and finally 114.51 (high Jul.11). On the other hand, the immediate support is located at 113.27 (10-day sma) followed by 113.25 (low Oct.23) and then 112.89 (21-day sma).