USD/JPY eases from tops near 114.40
- Spot retreated from highs in the vicinity of 114.30.
- US yields tested tops near 2.34% just to lose some ground later.
- Yellen’s speech, US second tier data next on tap.
After printing fresh tops in the vicinity of the 114.40 area, USD/JPY has sparked a correction lower to the current 114.20/15 band.
USD/JPY focused on Yellen
The pair is now recovering ground lost and is posting gains for the first time since last Thursday, strongly rebounding from yesterday’s lows in the 113.70 region after being rejected from multi-month peaks in the boundaries of 114.70.
Spot keeps tracking the performance in US 10-year yields, which seem to have found a strong hurdle in the 2.34% area today, although they keep alive the bounce off weekly lows in the 2.31% neighbourhood.
In the meantime, the progress (or lack of it) around the US tax reform plan proposed by the White House should stay as the main driver for the buck in the next months along with the Fed-BoJ policy divergence.
In the US data space, the IBD/TIPP index is due seconded by JOLTs job openings and the speech by Chief J.Yellen
USD/JPY levels to consider
As of writing the pair is up 0.34% at 114.09 and a break above 114.73 (high Nov.6) would aim for 115.51 (high Mar.10) en route to 118.61 (2017 high Jan.3). On the other hand, the next hurdle aligns at 113.25 (21-day sma) seconded by 112.98 (23.6% Fibo of 107.33-114.73) and then 111.74 (200-day sma).