USD/JPY probing session highs near 110.50

The Japanese currency continues on the defensive during the first half of the week, now helping USD/JPY to move to session highs in the mid-110.00s.

USD/JPY higher on safe haven outflows

The pair is extending its weekly upside to the area of multi-day tops in the mid-110.00s so far, as the generalized risk-on sentiment continues to gather traction in the global markets and keeps supporting the outflows from the safe haven assets.

Yields in the US money markets stay on the rise for the time being, rebounding of recent lows while sustaining at the same time the underlying correction higher in the pair.

In the data space, US New Home Sales are next on tap, seconded by house prices measured by the S&P/Case-Shiller index and the key Conference Board’s Consumer Confidence.

In Japan, the BoJ meeting and inflation figures are due during the second half of the week.

On the positioning universe, JPY speculative net shorts have retreated to the lowest level since late December 2015.

USD/JPY levels to consider

As of writing the pair is gaining 0.62% at 110.45 and a surpass of 110.94 (38.2% Fibo of the March-April drop) would aim for 111.58 (high Apr.10) and then 112.01 (55-day sma). On the other hand, the next support aligns at 109.86 (23.6% Fibo of the March-April drop) followed by 108.95 (200-day sma) and finally 108.11 (2017 low Apr.17).