USD/JPY treading water just below 110.00 ahead of US data

• The greenback stays on a firm note near the 110.00 handle.
• US 10-year yields keep the trade above the 3.0% handle.
• US Retail Sales, Empire State index next of relevance in the US.

The greenback is extending the positive momentum on Tuesday and is now lifting USD/JPY to fresh peaks in the vicinity of the 110.00 milestone.

USD/JPY looks to yields, data

The pair is adding to yesterday’s gains and is now trading in the area of 3-day tops in levels just shy of the 110.00 mark, always on the back of an improved tone in US yields.

In fact, yields of the key US 10-year note have regained the critical 3.0% level and above, adding upside momentum to the pair and opening the door for another test of the psychological handle at 110.00 the figure.

Later in the NA session, April’s US Retail Sales and the regional manufacturing gauge by the Empire State index will be in the limelight seconded by the NAHB index, TIC Flows and Business Inventories for the month of March.

USD/JPY levels to consider

As of writing the pair is gaining 0.26% at 109.94 and a break above 110.03 (high May 1) would open the door to 110.18 (200-day sma) and then 110.48 (high Feb.2). On the downside, immediate contention is located at 108.96 (21-day sma) followed by 108.64 (low May 4) and then 108.47 (100-day sma).