USD/JPY stays near peaks, around 111.30

The Japanese currency remains on the back footing so far this week, this time taking USD/JPY to the 111.30/40 band, or session tops.

USD/JPY attention to US yields, data

The pair has deflated from daily highs as yields in the US money markets retraced part of the recent advance. The key US 10-year reference is flirting with daily lows in the vicinity of the 2.30% level as of writing.

Spot stayed apathetic following the announcement of the tax reform by the Trump’s administration on Wednesday, although the lack of details on the proposal hampered the upside momentum in the buck.

Nothing new from the BoJ at today’s meeting, leaving its monetary status quo unchanged, matching previous expectations. In the US, Durable Goods Orders, the usual weekly report on the labour market, Pending Home Sales and Goods Trade Balance figures are all due later in the NA session.

USD/JPY levels to consider

As of writing the pair is gaining 0.27% at 111.35 and a surpass of 111.97 (55-day sma) would aim for 112.20 (high Mar.27) and then 112.68 (61.8% Fibo of the March-April drop). On the other hand, the next support aligns at 110.94 (38.2% Fibo of the March-April drop) followed by 110.85 (low Apr.26) and finally 110.04 (20-day sma).