USD/JPY subdued below 113.00 ahead of US data

By FXStreet The Japanese currency keeps its gains vs. its American counterpart on Friday, taking USD/JPY to the 112.80 area, close to session lows.

USD/JPY weaker, focus on US CPI

The pair is retreating almost uninterruptedly since weekly peaks near 115.00 the figure recorded on Tuesday, backed by a pick up in the demand of the safe haven JPY against the backdrop of persistent risk aversion.

Spot is thus confirming the rangebound trading between 111.00 and 115.00 for the time being, while markets get ready for the key inflation figures due later in the US economy. Prior surveys expect consumer prices to have risen at an annualized rate of 1.3% during January, up from December’s 0.7% gain.

USD/JPY levels to watch

As of writing the pair is losing 0.32% at 112.86 with the next support at 110.98 (low Feb.11) ahead of 105.18 (monthly low Oct.2014) and finally 104.03 (monthly low Sep.2014). On the slip side, a breakout of 114.89 (high Feb.16) would aim for 115.28 (high Feb.10) and then 116.33 (20-day sma).
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Source:: FX Street