USD/JPY within range around 108.70, US data eyed
- USD remains on the defensive.
- Spot largely within range.
- US CPI, retail sales eyed.
The greenback keeps the negative undertone at the beginning of the week and is now motivating USD/JPY to navigate within the daily range in the 108.70 region.
USD/JPY focused on upcoming US data
Spot briefly tested fresh lows in the 108.00 area on Friday, levels last visited in September 2017, always within a context of increasing volatility and heightened demand for the safe haven currency.
JPY is extending its upside momentum on Monday and at the same time is keeping the pair on a bearish mood within the broader 108.00/110.50 range. Market participants should start shifting their focus to the upcoming US inflation figures and retail sales for the month of January and to be published on Wednesday.
In the meantime, the pair is paying little attention to the performance of yields in the US 10-year note, which are flirting with recent multi-year tops in the proximity of the 2.90% handle.
In the positioning space, JPY net shorts dropped to the lowest level since November 28 2017 during the week ended on February 6, according to the latest CFTC report.
USD/JPY levels to consider
As of writing the pair is losing 0.09% at 108.69 and a breakdown of 108.05 (2018 low Feb.9) would open the door to 107.33 (low Sep.8 2017) and finally 101.15 (low Nov.9 2016). On the other hand, the next up barrier lines up at 109.17 (10-day sma) seconded by 109.69 (21-day sma) and then 109.78 (high Feb.8).
