USD/JPY flirting with highs near 110.20

• The pair moves higher to the 110.20 region, or daily highs.
• US 10-year yields probe session highs near 2.96%.
• US Trade Balance figures next of relevance in the docket.

The selling bias around the Japanese currency remains unabated on Wednesday and is now motivating USD/JPY to advance to the 110.20 region, or session peaks.

USD/JPY looks to data, risk trends

The pair keeps the upbeat momentum intact so far this week, moving above the critical barrier at 110.00 the figure, or multi-day peaks, and challenging the always key 200-day sma.

Spot has been moving in tandem with yields of the key US 10-year note, which are now testing fresh tops in the 2.96% neighbourhood, all ahead of a broad-based risk-on sentiment in the global markets.

In the data space, US Trade Balance figures for the month of April are due later ahead of the weekly report on US crude oil supplies by the EIA.

USD/JPY levels to consider

As of writing the pair is gaining 0.38% at 110.20 and a break above 110.48 (high Feb.2) would open the door to 111.39 (high May 21) and finally 111.50 (high Jan.18). On the other hand, the immediate support aligns at 109.47 (10-day sma) would open the door to 108.95 (low May 24) and then 108.11 (low May 29).