USD/JPY surrenders gains on US data, back to 111.20

The Japanese Yen continues to lose ground vs. its American peer at the end of the week, today lifting USD/JPY to test multi-day peaks in the 111.40 region albeit easing some pips later.

USD/JPY bid ahead of US data

Spot is advancing for the second consecutive session so far today, with the recovery in US yields accompanying the up move in response to the hawkish message from the FOMC at its Wednesday’s meeting.

In fact, yields of the 10-year reference are climbing for two sessions in a row today, up from Wednesday’s multi-month lows near the key support at 2.10% to current levels around 2.17%.

Earlier in the session, the BoJ made no changes to its monetary policy meeting, broadly in line with market expectations.

Today’s US releases saw housing starts ticking lower to 1.092 million units in May, or a 5.5% contraction, while building permits contracted 4.9% to 1.168 million units during the same period.

Later in the session, the Reuters/Michigan index will gauge US consumer sentiment for the month of June along with the speech by Dallas Fed R.Kaplan (voter, hawkish).

USD/JPY levels to consider

As of writing the pair is up 0.23% at 111.19 facing the next hurdle at 111.42 (high Jun.16) followed by 111.60 (50% Fibo of the May-June drop) and finally 111.90 (100-day sma). On the other hand, a breakdown of 110.71 (20-day sma) would open the door to 109.69 (200-day sma) and then 109.25 (low Jun.15).