USD/JPY extends the rebound to 114.80, US data eyed

The greenback keeps pushing higher at the beginning of the week, now lifting USD/JPY to the 114.75/80 band ahead of US releases.

USD/JPY recovery bolstered by US yields

After bottoming out in the vicinity of 114.20 during overnight trade, the pair has managed to regain attention and advance towards the upper-114.00s, backed by a moderate rebound in the buck.

In fact, the US Dollar has reverted the negative start and turned positive during the European morning, as market participants seem to have already digested the lower-than-expected GDP figures during the fourth quarter (1.9% act.).

The daily rebound appears also propped up by a better tone in US money markets, with the 10-year benchmark now easing from earlier tops and trading near 2.48%.

On the positioning front, JPY speculative net shorts have been trimmed to 6-week lows during the week ended on January 2, according to the latest CFCT report.

USD/JPY levels to consider

As of writing the pair is retreating 0.38% at 114.65 and a break below 114.27 (low Jan.30) would aim for 113.93 (23.6% Fibo of the November-December 2015 up move) and then 113.01 (low Jan.25). On the upside, the next hurdle lines up at 115.39 (high Jan.27) ahead of 115.62 (high Jan.19) and finally 116.86 (high Jan.11).