USD/JPY: Scope to reach the 110.00 psychological mark

USD/JPY has embarked into a gradual correction lower after hitting monthly highs near 109.80 in past hours. However, in the view of FXStTreet’s Pablo Piovano, a move to 110.00 is not ruled out.

Focus of attention will once again be on the US docket

“Upcoming data is expected to shed extra details on the US recovery, with yields and price action in the dollar closely following. In the US docket, US Retail Sales will be in the limelight seconded by Industrial Production figures and the flash prints of the U-Mich index.”

“The continuation of the downtrend is seen meeting interim contention at the 50-day SMA just above 109.00. This area of contention is also reinforced by the Fibo level (of the 2021 rally) around 109.00. Further south comes in the monthly lows around 108.30 (May 7/11).” 

“On the upside, the surpass of monthly tops around 109.80 should open in the door to the key level at 110.00 the figure ahead of the YTD highs in levels just shy of 111.00 (March 31).”