USD/JPY drops back to 111.00 as US Dollar retreats

• USD/JPY trims daily gains as it pulls back from 4-month highs.
• DXY hits fresh lows after being unable to break above 94.00.

The USD/JPY pair reached earlier today at 111.38, the highest level since January 18 but then pulled back reaching levels under 111.00. It hit a session low at 110.98 and as of writing was trading at 111.05/10.

The retreat of the pair took place amid a correction of the US dollar. The DXY was falling marginally after a 6-day rally and it was trading near 93.50, after approaching 94.00.

Today’s economic calendar shows no relevant data. On Wednesday, CPI data is due in Japan while in the US, the Federal Reserve will release the minutes of its latest meeting.

Technical levels

To the upside, immediate resistance could be seen at 111.20/25 followed by the daily high at 111.40 and 111.70. On the flip side, support might lie at 110.80 (May 18 low), 110.50 and 110.05.