USD/JPY picks up pace, 112.00 closer

The greenback is now accelerating its daily rebound, lifting USD/JPY to the 111.85/90 band, or daily highs.

USD/JPY attention to risk trades

The pair is extending its choppy fashion so far this week, albeit with an upside bias for the time being, facing interim resistance in the 112.00 region, where sits a retracement of the April-May up move and yesterday’s tops.

Yields in the US money markets are bouncing off session lows, lending extra support to the pair’s up move. The key 10-year benchmark is currently hovering over the 2.25%, up from Tuesday’s lows around 2.22%.

In the US data space, the usual weekly report on the labour market is due next followed by Wholesale Inventories and the speech by FOMC’s L.Brainard (permanent voter, centrist). In Japan, key inflation figures will be the salient event tomorrow.

USD/JPY levels to consider

As of writing the pair is up 0.29% at 111.83 and a breakout of 111.99 (38.2% Fibo of 108.11-114.39) would open the door to 112.12 (high May 24) and finally 112.45 (20-day sma). On the other hand, the immediate support is located at 111.25 (50% Fibo of 108.11-114.39) seconded by 110.84 (low May 23) and then 110.21 (low May 18).