USD/JPY off lows, looking to regain 111.00

USD/JPY is now attempting to retake the 111.00 handle after briefly dipping to fresh YTD lows near 111.60.

USD/JPY weaker on US yields

Spot picked up further downside traction after yields of the US 10-year reference broken below the 2.40% level, where it is now trying to consolidate. Yields have been losing ground since tops pre-FOMC meeting around 2.63%, or 2017 peaks.

The greenback – tracked by the US Dollar Index – stays within a narrow range, alternating gains with losses in the mid-99.00s for the time being.

Data from the US docket showed Initial Claims increasing by 258K WoW, taking the 4-Week Average to 240.00K from 239.00K in the previous week. Other data saw New Home Sales up by 592K units in February, or gaining 6.1%, both prints coming in above expectations.

In the meantime, market participants continue to wait for the outcome of today’s voting on the American Health Care Act, where a positive outcome for President Trump (and the Dollar) appears to be struggling.

USD/JPY levels to consider

As of writing the pair is losing 0.12% at 111.03 and a drop below 110.63 (low Mar.23) would aim for 109.91 (50% Fibo of the November-December rally) and finally 108.18 (200-day sma). On the other hand, the next up barrier is located at 111.77 (high Mar.22) ahead of 112.88 (high Mar.21) and then 113.38 (20-day sma).