USD/JPY downside stalled near 110.00

The greenback continues to lose ground at the beginning of the week, dragging USD/JPY to fresh lows near 110.00 the figure.

USD/JPY weaker post-‘Trumpcare’

The pair resumed its downside after Friday’s attempt of recovery, coming down to test levels last seen in mid-November near the 110.00 handle in response to the recent failure of President Trump to pass the American Health Care Act (known as ‘Trumpcare’).

Yields in US money markets – particularly the 10-year reference – plummeted to fresh lows in the wake of the opening bell on Monday, although it seems to have found some support in the 2.35% neighbourhood for the time being.

In the data space, nothing worth mentioning in the US docket, while Chicago Fed C.Evans (voter, dovish) due to speak later in the NA session.

USD/JPY levels to consider

As of writing the pair is losing 0.90% at 110.37 and a drop below 110.12 (low Mar.27) would aim for 109.91 (50% Fibo of the November-December rally) and finally 108.25 (200-day sma). On the other hand, the immediate hurdle lines up at 111.50 (high Mar.24) ahead of 112.89 (high Mar.20) and then 113.20 (20-day sma).