USD/JPY upside stalled just ahead of 107.00

The greenback has now deflated from daily highs vs. its Japanese peer on Friday, dragging USD/JPY to the 106.60 region at the end of the Asian session.

USD/JPY looks to US politics, data

Spot is thus reverting 5-consecutive sessions with gains after the upside momentum seems to have run out of legs in the vicinity of the key barrier at 107.00 the figure in early trade.

Somewhat supporting the Japanese safe haven, FinMin Aso noted the importance of stability in FX markets, while he advocated for the need to closely watch FX moves.

Ahead in the day, market participants will remain focused on political developments in the US following the victory of Donald Trump. On the data front, the advanced figures of the Reuters Michigan index for the current month are only due along with the speech by FOMC’s S.Fischer (permanent voter, hawkish).

USD/JPY levels to consider

As of writing the pair is retreating 0.26% at 106.55 and a break below 104.45 (20-day sma) would aim for 102.54 (low Nov.3) and then 101.15 (low Nov.9). On the flip side, the initial hurdle aligns at 107.48 (high Jul.21) ahead of 111.45 (high May 30) and finally 111.92 (high Apr.25).