USD/JPY unmotivated around 111.50

USD/JPY is trading almost unchanged at the beginning of the week, trading in a narrow range between 111.20 and 111.60.

USD/JPY focus on US docket

Spot is extending its consolidative pattern today, trading in the lower end of the recent range albeit still closer to recent multi-month lows in the 110.60 area. Despite today’s better tone in the greenback the pair remains unable to generate a sustainable upside, all amidst a re-pricing of the Fed policy and scepticism surrounding the BoJ.

Fairly light calendar in Japan this week, with only inflation figures due on Friday. On the US front, today’s Existing Home Sales will precede Fed’s Lockhart’s speech, ahead of tomorrow’s flash manufacturing PMI and the API report on stockpiles.

USD/JPY levels to watch

As of writing the pair is losing 0.07% at 111.47 and a break below 110.65 (low Mar.17) would expose 105.18 (monthly low Oct.2014) and then 100.74 (monthly low Feb.4 2014). On the other hand, the next up barrier aligns at 112.94 (20-day sma) followed by 114.58 (high Mar.2) and then 114.87 (38.2% Fibo of 121.70-110.65).