USD/JPY: bulls looking for a traction again on the 111 handle from Tokyo

Currently, USD/JPY is trading at 111.70, down -0.13% on the day, having posted a daily high at 111.87 and low at 111.65.

USD/JPY has been relatively steady despite the volatility elsewhere. Interest rates have not been as fluent within ranges and Wall Street didn't set off any fireworks but as a weight nonetheless for the yen. 

Japanese inflation rises at a fastest pace since Apr 2015

The dollar was boosted this week, before the FOMC minutes, that is and again today on the drop in oil. USD/JPY rose from 111.60 to 111.95. DXY is trading above the 97 handle while the 10 years ranged sideways between 2.24% and 2.27%.  2yr yields firmed slightly from 1.28% to 1.30%. "Fed fund futures yields firmed slightly, now pricing a June rate hike as an 85% chance," explained analysts at Westpac.

USD/JPY levels

Valeria Bednarik, chief analyst at FXStreet explained that the 4-hours chart shows that the price remains midway between its 100 and 200 SMAs, both horizontal, while right below the 38.2% retracement of the latest bullish run around 1.1200. "In the same chart, technical indicators have lost upward strength but hold within positive territory, limiting chances of a strong decline, at least as long as the price holds above 111.60."

USD/JPY: The dailies remain rather negative - Jim Langlands

"On the downside, below 111.45, there is little to prop the dollar up until 111.00, a break of which would lead to 110.85 and 110.60 ahead of last Thursday’s low of 110.23," explained Langlands.