USD/JPY flirting with highs around 111.40

The greenback stays on the positive note vs. the safe haven Yen, now lifting USD/JPY to fresh tops in the 111.40 region.

USD/JPY focus on data, FOMC

The pair is prolonging its upside for the second consecutive session on Monday, extending its breakout of the critical 111.00 barrier amidst a renewed buying interest surrounding the buck.

In fact, investors seems to have already digested Friday’s poor prints from US retail sales during August, giving fresh oxygen to the greenback and thus helping spot to climb to fresh 2-month tops near 111.50.

Today’s up tick in spot is, as usual, sustained by a recovery of yields of the key US-10 year reference briefly testing levels above 2.21% just to ease some bp soon afterwards.

In the data space, US NAHB index is next on tap seconded by TIC flows, while the meetings of the FOMC and the Bank of Japan will grab all the attention later in the week.

In addition, USD net shorts have receded to the lowest level since June 20 during the week ended on September 12, as shown by the latest CFTC report.

USD/JPY levels to consider

As of writing the pair is gaining 0.47% at 111.35 and a breakout of 111.77 (61.8% Fibo of 114.51-107.32) would open the door to 112.27 (200-day sma) and then 112.82 (76.4% Fibo of 114.51-107.32). On the other hand, the immediate support emerges at 110.72 (55-day sma) seconded by 110.07 (38.2% Fibo of 114.51-107.32) and finally 109.68 (10-day sma).