USD/JPY looks for direction around 111.30

The greenback is trading almost unchanged vs. its Japanese counterpart at the beginning of the week, taking USD/JPY to a sideline theme around the 111.30 region.

USD/JPY supported around 110.80

The pair is practically hovering over last Friday’s close, struggling for direction amidst extremely light trading conditions in response to the holidays in both the US and UK.

In the meantime, spot has managed to revert the drop from last week’s lows in the vicinity of the 110.80 region, although gains appear so far limited just below 112.00 the figure.

On the positioning front, JPY speculative net shorts have receded to 2-week lows in the week to May 23 according to the latest CFTC report.

Data wise ahead in the week, Japanese retail sales and April’s unemployment rate are due tomorrow, while PCE figures and personal income/spending will be the salient events in the US calendar.

USD/JPY levels to consider

As of writing the pair is losing 0.02% at 111.33 with the immediate support at 110.85 (low May 26) seconded by 110.51 (61.8% Fibo of 108.11-114.39) seconded by 110.21 (low May 18) and then 110.12 (200-day sma). On the flip side, a breakout of 111.99 (38.2% Fibo of 108.11-114.39) would open the door to 112.12 (high May 24) and finally 112.41 (20-day sma).