USD/JPY off highs, around 110.50

After advancing to fresh tops near 110.80 during early trade, USD/JPY has lost some momentum and is now looking to stabilize in the mid-110.00s.

USD/JPY recent gains capped near 111.70

The pair is attempting to consolidate in the lower bound of the daily range, following Friday’s slump of more than a big figure since the 111.70 region to as low as the vicinity of 110.30 in response to poor US payrolls figures.

Today’s up move is supported by the better performance of US yields, with the 10-year reference bouncing off Friday’s multi-month lows in the sub-2.15% area to the current 2.18% region.

From the speculative community, JPY net shorts have increased to 2-week peaks during the week ended on May 30, as per the latest CFTC report.

In the data space, US factory orders are due later seconded by Markit’s services PMI, ISM non-manufacturing, unit labor costs and non-farm productivity. In Japan, the next salient event will be the release of the GDP figures for the January-March period (Thursday).

USD/JPY levels to consider

As of writing the pair is up 0.15% at 110.56 and a breakout of 111.20 (55-day sma) would open the door to 111.99 (38.2% Fibo of 108.11-114.39) and finally 112.25 (100-day sma). On the flip side, the next down barrier is located at 110.36 (200-day sma) followed by 110.21 (low May 18) and finally 109.59 (76.4% Fibo of 108.11-114.39).