USD/JPY holds above 110.00 handle after US PPI

The USD/JPY pair trimmed some of its early gains, albeit has managed to hold its neck above the key 110.00 psychological mark through early NA session.

Spot held on to minor gains near 110.15 level and found some fresh support from the latest US PPI print, released just a short while ago. The US producer price index (PPI) was unchanged in May and the yearly rate came-in at 2.4%, slightly better-than 2.3% expected. The positive surprise came from core reading, excluding food & energy, which provided a minor boost to the US Dollar.

Adding to this, the prevalent risk-on mood, which tends to drive investors away from traditional safe-haven assets, further remained supportive of the bid tone surrounding the major.

The pair, however, has held within European session trading range as market participants now look forward to this week’s key central bank monetary policy decision – FOMC decision on Wednesday and BoJ announcement during Asian session on Thursday, which would help determine the pair’s next leg of directional move.

Technical levels to watch

From current levels, 109.80-75 region is likely to act as immediate support, which if broken could accelerate the slide further towards 109.40-35 support en-route near 2-month lows support near 109.10 level, touched on June 7.

On the upside, strong momentum above 110.30 level could get extended towards 110.75-80 resistance area before the pair eventually surpasses the 111.00 handle and aim towards testing its next resistance near 111.25-35 region.