USD/JPY flirting with highs near 109.30, Fedspeak eyed

• The greenback remains on a firm note on Monday.
• US 10-year yields keep consolidating in the 2.96% area.
• FOMC’s speakers next of relevance ahead in the day.

The solid performance of the greenback at the beginning of the week is now lifting USD/JPY to the area of daily highs in the 109.30/35 band.

USD/JPY looks to Fedspeak

The pair is managing to gather some upside traction today following three consecutive daily pullbacks after clinching fresh cycle tops just above the critical 110.00 the figure during last week. Spot, however, appears to have found moderate support in recent lows in the vicinity of 108.80 for the time being.

The pair appears decoupled for the performance of key yields in the US 10-year benchmark, which are attempting a consolidative theme around 2.95%/2.96% ahead of Fed speakers and the publication of US CPI figures later in the week.

On the positioning front, JPY speculators returned to the net short territory for the first time since late March during the week ended on May 1, as showed by the latest CFTC report.

Later in the session, speeches by Atlanta Fed R.Bostic (voter, centrist), Richmond Fed T.Barkin (voter, centrist), Dallas Fed R.Kaplan (non voter, hawkish) and Chicago Fed C.Evans (2019 voter, dovish) should keep the focus on the buck.

USD/JPY levels to consider

As of writing the pair is gaining 0.17% at 109.31 facing the immediate hurdle at 110.03 (high May 1) followed by 110.22 (200-day sma) and then 110.48 (high Feb.2). On the downside, a breakout of 108.64 (low May 4) would aim for 108.28 (21-day sma) and finally 107.78 (high Apr.13).