USD/JPY upside stalled around 112.50, US PCE eyed
- Spot gathers further traction to the mid-112.00s.
- US 10-year yields sidelined near weekly tops.
- Attention on US PCE, due later in the NA session.
The greenback is extending the upside momentum on Thursday and is now pushing USD/JPY to the area of multi-day tops in the mid-112.00s.
USD/JPY focused on US PCE
Spot is up for the third consecutive session so far on Thursday, backed by the continuation of the buying interest around the greenback, while coupled at the same time with the persistent bearish mood surrounding the Japanese safe haven currency.
USD remains bid amidst rising optimism around the US tax reform, as the Senate is due to vote on its bill later today.
In addition, the pair’s upside has been sustained by a moderate rebound in yields of the key US 10-year reference, which climbed to fresh tops near 2.40% on Wednesday in response to auspicious prints from advanced US Q3 GDP figures.
Ahead in the session, initial claims are next on tap seconded by personal income/spending and inflation figures gauges by the PCE. In addition, Dallas Fed R.Kaplan (voter, hawkish) is also due to speak.
USD/JPY levels to consider
As of writing the pair is up 0.39% at 112.37 facing the next up barrier at 112.72 (high Nov.21) seconded by 112.75 (21-day sma) and finally 112.98 (23.6% Fibo of 107.33-114.73). On the other hand, a breach of 111.90 (38.2% Fibo of 107.33-114.73) would open the door to 111.69 (200-day sma) and then 111.58 (100-day sma).