USD/JPY accelerates the downside to 112.40, US data eyed

The greenback stays on a positive note so far on Friday, with USD/JPY now giving away some gains towards the 112.40 area.

USD/JPY focus on US data releases

Spot is posting moderate gains and reverting yesterday’s losses after being rejected from weekly tops in the 113.30 region (Wednesday), or fresh 2-month peaks.

The softer momentum in the greenback is following a retracement in yields of the key 10-year reference, which are now under pressure in the 2.30% area, or daily highs. It is worth mentioning that yields climbed to tops around 2.36% on Thursday in response to the rising optimism following the tax reform proposal by the Trump’s administration earlier in the week.

In the data space, Japanese inflation figures showed the National Core CPI rising at an annualized 0.7%, matching consensus for the month of August, while advanced data saw industrial production is expected to expand 2.1% during the same period.

In the US, August’s inflation figures tracked by the PCE next on tap, seconded by personal income/spending and the final print of the consumer sentiment for the month of September. In addition, Philly Fed P.Harker (voter, hawkish) is also due to speak.

USD/JPY levels to consider

As of writing the pair is gaining 0.12% at 112.44 and a breakout of 113.27 (high Sep.27) seconded by 113.60 (high Jul.14) and finally 114.51 (high Jul.11). On the flip side, the immediate down barrier lines up at 112.15 (10-day sma) seconded by 112.04 (200-day sma) and then 111.71 (61.8% Fibo of 114.51-107.33).