USD/JPY retreats from tops, near 107.20
|- The pair fades the initial spike to daily tops near 107.40.
- US 10-year yields rebound beyond 2.84%, session highs.
- US Fed’s Beige Book, Fed speakers coming up next.
The greenback keeps the upbeat tone vs. its Japanese counterpart on Wednesday, pushing USD/JPY to the 107.30/40 band, or daily highs.
USD/JPY up on risk trends
After two consecutive daily pullbacks, the pair met fresh buyers and is now looking to extend the bull run further north of the 107.00 handle on a more sustainable fashion.
The prevailing sentiment among traders continue to favour the demand for riskier assets today in detriment of the safe haven JPY and remains the exclusive catalyst of the pair’s up move for the time being.
Data wise today, Japanese trade surplus widened more than expected to ¥0.12 trillion in March despite both exports and imports came in below initial estimates. In the US calendar, the Fed will release the Beige Book later today along with speeches by NY Fed W.Dudley (permanent voter, centrist) and FOMC’s R.Quarles.
USD/JPY levels to consider
As of writing the pair is up 0.17% at 107.19 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 106.51 (21-day sma).
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