USD/JPY gearing up for 109.00

The greenback has reverted the recent downside vs. the Japanese currency, with USD/JPY staying in the upper-108.00s for the time being.

USD/JPY looks to US yields

The pair has reverted yesterday’s drop and has recovered the upside so far this week, finding strong support around the 108.00 neighbourhood although a breakout of the key 109.00 barrier still remains elusive.

The up move in spot is fuelled by today’s solid performance from yields in the US money markets, with the 10-year reference trading in session tops above the 2.21% mark, up from Tuesday’s fresh 2017 lows around 2.17%.

On the data front, the Fed will publish its Beige Book later today preceded by the EIA’s report on crude oil inventories and the speech by Boston Fed E.Rosengren (2019 voter, hawkish).

USD/JPY levels to consider

As of writing the pair is advancing 0.48% at 108.95 and a surpass of 109.23 (high Apr.18) would aim for 109.86 (23.6% Fibo of the March-April drop) and then 110.32 (20- day sma). On the other hand, the immediate support lines up at 108.29 (low Apr.18) followed by 108.11 (2017 low Apr.17) and finally 105.99 (200-month sma).