USD/JPY regains 111.00 and beyond on US PCE

The greenback is extending further its rebound vs. the Japanese curreny on Tuesday, now lifting USD/JPY to the 111.20 region in the wake of US data releases.

USD/JPY supported near 110.80

The pair gained extra pace after US inflation figures measured by the PCE rose at an annualized 1.7% and 0.2% on a monthly basis in April. Prices excluding food and energy costs rose 0.2% MoM and 1.5% over the last twelve months.

Additionally, US personal income expanded 0.4% inter-month during the same period, while personal spending rose 0.4% MoM.

Yields in the US money markets spiked to session tops just after the releases, retracing part of the move afterwards. The yield of the 10-year reference briefly approached the 2.25% level and is now looking to stabilize near 2.24%.

USD/JPY levels to consider

As of writing the pair is losing 0.11% at 111.14 with the immediate support at 110.78 (low May 30) seconded by 110.51 (61.8% Fibo of 108.11-114.39) and finally 110.21 (low May 18). On the flip side, a breakout of 111.33 (high May 30) would open the door to 111.99 (38.2% Fibo of 108.11-114.39) and then 112.12 (high May 24).