USD/JPY choppy around 114.00

The greenback is trading slightly into the positive ground vs. the Japanese currency today, with USD/JPY gravitating around the 114.00 handle.

USD/JPY upside capped around 114.70

Spot is prolonging its consolidative theme around the 114.00 limestone so far this week, coming down from last week’s tops in the 114.70/75 band as expectations of a rate hike by the Fed on March 15 seems to have stabilized for the time being.

In fact, the upside momentum around rate hike expectations seems somewhat mitigated as of late, as market participants have practically priced in a 25 bp hike at next week’s meeting.

Yields in the US money markets, particularly the 10-year reference, stay in the upper end of the recent range, hovering over the critical 2.5% level ahead of key releases in the US calendar ahead in the week.

In the data space, US trade balance figures and the IBD/TIPP index are due later, while final Q4 GDP figures will be in the limelight in the Japanese docket tomorrow.

USD/JPY levels to consider

As of writing the pair is gaining 0.02% at 113.91 facing the initial hurdle at 114.47 (55-day sma) ahead of 114.97 (high Feb.15) and then 115.09 (50% Fibo of the 2017 drop). On the flip side, a breakdown of 113.53 (low Mar.6) would aim for 113.35 (20-day sma) and finally 113.23 (23.6% Fibo of the 2017 drop).