USD/JPY recedes from daily highs, back around 113.00

After climbing to fresh daily highs near 113.20 in early trade, USD/JPY is now giving away some gains and testing the vicinity of the 112.90 zone.

USD/JPY focus on US yields

The pair is up for the third straight session so far, always trading in tandem with the performance in US yields, where the 10-year reference has been rejected from tops above 2.36%, albeit it keeps the upbeat mood.

However, the area beyond 113.00 the figure is probing to be quite a tough barrier as per recent tests and the subsequent absence of follow through.

In the meantime, JPY remains fragile against the backdrop of persistent uncertainty surrounding the Japanese political scenario, particularly after PM S.Abe recently called for snap elections.

Ahead in the day, second-tier releases are expected in the US docket preceding the speech by FOMC’s J.Powell.

USD/JPY levels to consider

As of writing the pair is gaining 0.20% at 112.97 and a breakout of 113.19 (high Oct.3) would open the door to 113.27 (high Sep.27) and finally 113.60 (high Jul.14). On the flip side, the immediate down barrier lines up at 112.40 (10-day sma) seconded by 111.99 (200-day sma) and then 111.71 (61.8% Fibo of 114.51-107.33).