USD/JPY on a firm note around 107.40/50
- The Japanese currency remains on the defensive beyond 107.00.
- Higher US 10-year yields appear supportive of the up move.
- US Initial Claims, Philly Fed index and Fedspeak next on tap.
The continuation of the selling bias around the Japanese currency is helping USD/JPY to keep the positive mood for another session around the 107.40 area.
USD/JPY looks to data
The pair is posting its second consecutive session with gains on Thursday, coming up from weekly lows in the 106.90/85 band seen on Tuesday and with the next target at last week’s tops near 107.80.
The persistent risk on theme continues to rule the sentiment in the global markets as of late, all stemming from alleviated concerns over the US-China trade conflict and shrinking tensions in the Middle East.
Later in the NA session, the usual weekly report on the US labour market is due along with the more relevant manufacturing gauge from the Philly Fed. In addition, FOMC’s (dovish) Governor L.Brainard and Cleveland Fed L.Mester (voter, hawkish) are also due to speak.
USD/JPY levels to consider
As of writing the pair is up 0.16% at 107.40 and a break above 107.78 (high Apr.13) would aim for 107.92 (high Feb.21) and then 110.48 (high Feb.2). On the downside, the immediate support lines up at 106.88 (low Apr.17) followed by 106.61 (low Apr.9) and finally 106.58 (21-day sma).