USD/JPY move higher on US yields, around 113.30

The greenback is now pick up further pace vs. its Japanese counterpart, sending USD/JPY to the area of 113.30, or the middle of the daily range.

USD/JPY support comes near 112.80

After bottoming out in the vicinity of 112.80 in early trade, spot seems to have attracted some buying interest and has now regained the 113.00 handle and above backed by the rebound in US yields.

In fact, the yield of the US 10-year reference is now testing the area of daily tops around 2.34% after dropping to the 2.30% neighbourhood.

In the US data space, mixed results today saw initial claims increasing to 247K WoW, taking the 4-week average to 245.75K from 243.50K from the previous week. In addition, US producer prices rose more than expected in June, up 2.0% YoY and 0.1% on a monthly basis.

Later in the session, the second testimony by Chief J.Yellen is due along with speeches by Chicago Fed C.Evans (voter, centrist) and L.Brainard (permanent voter, dovish).

In the meantime, the pair appears on a better mood for the time being, reverting two consecutive sessions with losses after being rejected at Tuesday’s multi-week peaks near 114.50.

USD/JPY levels to consider

As of writing the pair is advancing 0.16% at 113.32 facing the next up barrier at 114.51 (high Jul.12) seconded by 115.51 (high Mar.10) and finally 118.61 (2017 high Jan.3). On the other hand, a break below 112.87 (low Jul.13) would aim for 112.71 (low Jul.4) and then 112.44 (21-day sma).