USD/JPY drops below 109.00 levels

Bid tone around Yen strengthened, pushing USD/JPY below 109.00 levels as treasury yields in the US are showing no signs of life.

Eyes US data

Pair now waits US data release, which is expected to show industrial production contracted by 0.1% in March following a 0.5% drop in February. The data will be followed by Michigan consumer sentiment release.

The data if triggers a move in US treasury yields could influence the pair. The pair currently trades around 108.86 levels after having clocked a high of 109.73 levels. Meanwhile, treasury yields are trading on a flat to negative note.

USD/JPY Technical Levels

Acceptance below 108.85 (hourly 100-MA) would open doors for slide to 108.44 (hourly chart support, beyond which the pair may test 108.00 levels. On the other hand, a break above daily high of 109.73 would shift risk in favor of a rise to 110.00, above which prices could test supply around 110.67 (Mar 17 low).