USD/JPY stronger near 111.50 ahead of Fedspeak

The better tone in the greenback is helping USD/JPY to keep the positive territory above the 111.00 handle for the time being.

USD/JPY up on US yields

Spot is reverting Friday’s pullback and is looking to extend the rebound from last week’s 3-week lows in the 110.20/15 band, advancing above the 111.00 mark although with gains capped near 1110.60.

Yields in the US money markets are trading on a firm footing at the beginning of the week, sustaining further the upside momentum in spot. The US 10-year reference has retaken the 2.25%, after last week’s drop to the 2.18% area.

Nothing expected data wise today in the US calendar, while speeches by FOMC’s L.Brainard (permanent voter, centist), Philly Fed P.Harker (voter, hawkish) and Minneapolis Fed N.Kashkari (voter, dovish) expected to keep the attention on the buck ahead of the publication of the FOMC minutes on Wednesday.

In Japan, May’s inflation figures will be the main release on Friday.

USD/JPY levels to consider

As of writing the pair is up 0.15% at 111.43 and a breakout of 111.99 (38.2% Fibo of 108.11-114.39) ahead of 112.37 (20-day sma) and finally 112.71 (100-day sma). On the other hand, the immediate support is located at 111.02 (low May 19) seconded by 110.51 (61.8% Fibo of 108.11-114.39) and then 110.21 (low May 18).