USD/JPY retakes 105.00 ahead of US releases

The upside momentum in the greenback is now lifting USD/JPY to the 105.00 handle, or session peaks.

USD/JPY now looks to US docket

After a brief test of daily lows in the vicinity of 104.40, the pair has managed to resume the upside and retake the 105.00 neighbourhood, posting moderate gains for the day.

Later in the NA session, US inflation figures measured by the PCE (Fed’s preferred gauge) and September’s Personal Income/Spending are all due, ahead of the key FOMC meeting (Wednesday) and Non-farm Payrolls (Friday).

In the meantime, the bearish note remains intact around the Japanese safe haven via a sidelined performance of the Japanese yields, all amidst a so far effective ‘yield control’ by the BoJ.

On the positioning side and according to the latest CFTC report, JPY speculative net longs reached fresh 2-week highs on the week to October 25.

USD/JPY levels to consider

As of writing the pair is up 0.24% at 104.98 facing the immediate hurdle at 105.55 (high Oct.28) ahead of 106.85 (200-day sma) and finally 107.48 (high Jul.21). On the downside, a break below 104.05 (20-day sma) would open the door to 102.78 (low Oct.10) and then 102.51 (55-day sma).