USD/JPY retreats from highs, back to 102.20

After testing fresh daily highs above the 102.40 area, USD/JPY has now deflated to the 102.30/20 band.

USD/JPY bolstered by USD momentum

The greenback remains on a firm footing during the first half of the week, always backed by recent hawkish comments by Yellen and other FOMC governors, putting a rate hike in September back on the table. The final decision, however, still remains data-dependent.

In the meantime, spot is advancing for the fifth session in a row today trading in fresh 3-week tops near the key 102.50 area.

Later in the NA session, the S&P/Case-Shiller index is expected to have expanded at an annualized 5.1% in June, while Consumer Confidence tracked by the Conference Board is seen at 97.0 for the current month.

USD/JPY levels to consider

As of writing the pair is gaining 0.37% at 102.30 facing the immediate hurdle at 102.88 (55-day sma) followed by 103.28 (50% Fibo of the June-July up move) and finally 105.55 (100-day sma). On the other hand, a breakdown of 101.13 (20-day sma) would aim for 99.53 (low Aug.16) and then 99.08 (low Jun.24).