USD/JPY: technical dead zone, watching breakout points 109.80/05

Currently, USD/JPY is trading at 110.65, up 0.43% on the day, having posted a daily high at 110.70 and low at 109.90.

USD/JPY has made gains on the session but as analysts at Scotiabank explained, "more obvious progress, beyond words, on US economic and tax reforms are needed to lift yields and boost the USD further." 

US PPI: Core inflation maintains trend - Wells Fargo

As for today's data, the seasonally adjusted Producer Price Index for final demand rose by 0.2% on a monthly basis in August after recording a 0.1% contraction in July, missing expectations of 0.3%. Elsewhere, eyes are on the Dow Jones today that has reached towards yesterday's resistance and possible breakout point 22177.90.

USD/JPY levels

The analysts at Scotiabank noted that USDJPY is in the technical dead zone:

"Gains from last week’s low were impressive but have not yet extended to the point that we can be confident that the USD will continue to advance. Mixed trend strength signals rather favour choppy range trading for the moment, we think, and intraday patterns suggest investors are lagging into short positions above 110. Weakness may extend intraday below 109.80."