USD/JPY testing daily highs near 109.30, US PCE on sight

• The greenback resumes the upside vs. its Japanese counterpart on Monday.
• Inactivity in the Japanese markets drains activity in the pair.
• US PCE, Personal Income/Spending, Chicago PMI next on tap.

After two consecutive daily pullbacks, USD/JPY is now regaining some buying interest and is looking to consolidate the trade above the critical barrier at 109.00 the figure.

USD/JPY now looks to US calendar

The pair keeps navigating the upper end of the recent range above the 109.00 milestone amidst the continuation of the up move in the buck and in spite of yields of the key US 10-year note remain sidelined around the 2.96% handle.

With Japanese markets closed due to the Showa Day holiday, activity and volatility in spot remains marginal and always keeping an eye on the US money markets.

Adding some support to the buck, US Treasury Secretary S.Mnuchin showed himself optimistic over the U-China trade talks.

Data wise in later in the NA session, US inflation figures gauged by the PCE are due for the month of April, along with the Chicago PMI, Pending Home Sales and Personal Income/Spending.

From the speculative community, JPY net longs receded to 4-week lows during the week ended on April 24, as showed by the latest CFTC report.

USD/JPY levels to consider

As of writing the pair is gaining 0.27% at 109.34 and a break above 109.54 (high Apr.27) would aim for 110.25 (200-day sma) and then 110.48 (high Feb.2). On the flip side, immediate contention emerges at 108.39 (10-day sma) seconded by 107.62 (21-day sma) and finally 106.86 (low Apr.17).