USD/JPY finds support around 111.80, US CPI on sight

The Japanese currency stays strong vs. its American peer at the end of the week, with USD/JPY managing to regain the 112.00 handle after a brief test of lows in the 111.90/85 band.

USD/JPY focus on US docket

Spot is down for the second consecutive session so far today, finding support in the critical 200-day sma around 111.80 and trading, as usual, in tandem with the performance of yields in the US money markets.

In fact, yields of the key US 10-year reference remain unable to gather some traction for the time being, navigating in the area of recent lows in the 2.32% neighbourhood after climbing as high as the 2.40% area during last week.

Looking ahead, the pair is expected to be under scrutiny in light of key US inflation figures tracked by the CPI, September’s retail sales and the flash print for consumer confidence for the current month.

USD/JPY levels to consider

As of writing the pair is retreating 0.19% at 112.08 facing the immediate support at 111.86 (low Oct.13) seconded by 111.77 (61.8% Fibo of 114.51-107.33) and then 111.47 (low Sep.11). On the other hand, a break above 112.29 (21-day sma) would pave the way for a test of 112.58 (10-day sma) and finally 113.44 (high Oct.6).