USD/JPY flirting with highs near 103.80

The greenback is recovering [art of yesterday’s pullback vs. its Japanese peer, now lifting USD/JPY to daily tops in the vicinity of 103.80.

USD/JPY eyes on US data

Choppy week for the pair for the time being, at the moment snapping a 3-week positive streak and retreating from last week’s peaks above 104.60.

In the meantime, spot continues to navigate the upper end of the recent range bolstered by expectations of a Fed’s move by year-end, although a more sustainable break above the 104.60 area still remains elusive.

Nothing worth mentioning data wise in Japan so far this week, although tomorrow’s speech by Governor H.Kuroda could bring in some volatility. On the USD-side, Initial Claims are due followed by Existing Home Sales, the Philly Fed manufacturing gauge and the speech by NY Fed W.Dudley (permanent voter, neutral).

USD/JPY levels to consider

As of writing the pair is up 0.22% at 103.69 facing the immediate hurdle at 104.64 (high Oct.13) ahead of 107.48 (high Jul.21) and finally 107.65 (200-day sma). On the downside, a break below 103.15 (low Oct.19) would open the door to 102.69 (20-day sma) and then 102.07 (55-day sma).