USD/JPY advances to session highs near 111.00

The buying interest seems to have returned around the buck on Monday, now lifting USD/JPY to the area of daily tops just below 111.00 the figure.

USD/JPY coming up from 109.80

Spot is extending the rebound from Friday’s fresh lows in the vicinity of 109.80, quickly regaining the 110.00 handle and beyond following strong results from US payrolls for the month of July.

The pair’s momentum is propped up by the positive performance of yields in the US money markets, especially of the 10-year benchmark, which are now trading near 2.27% after falling to the 2.22% neighbourhood on Friday.

News from the positioning front sees JPY speculative net shorts retreating to 4-week lows during the week ended on August 1, as per the latest CFTC report. Net shorts in the buck, instead, receded to 2-week lows.

Nothing scheduled data wise in Euroland today, while the Fed’s labor market conditions index and speeches by FOMC’s dovish governors J.Bullard (St. Louis Fed, 2019 voter) and N.Kashkari (Minneapolis Fed, voter) are due across the pond.

Data wise in the US docket, the Fed’s labor market conditions index is next on tap followed by speeches by FOMC’s dovish governors J.Bullard (St. Louis Fed, 2019 voter) and N.Kashkari (Minneapolis Fed, voter).

USD/JPY levels to consider

As of writing the pair is gaining 0.14% at 110.85 and a surpass of 111.06 (high Aug.4) would open the door to 111.38 (100-day sma) and then 111.61 (38.2% Fibo of 108.81-114.51). On the flip side, the next support emerges at 109.82 (low Aug.4) seconded by 109.01 (low Jun.7) and finally 108.81 (low Jun.14).