USD/JPY pierces 111.00, daily lows

The greenback has retreated from daily highs vs. its Japanese counterpart, prompting USD/JPY to drop to session lows in sub-111.00 levels.

USD/JPY lower on weaker US yields

Spot is deriving downside pressure from the poor performance of yields in the US money markets, where the 10-year reference has managed to bounce off daily lows and has now regained the 2.41% level.

The pair is retreating for the third consecutive week so far, finding strong support in the 110.00 neighbourhood – where sits the key 200-day sma - although still struggling to gather some sustainable upside traction.

Recent comments by Dallas Fed R.Kaplan (voter, hawkish) pointed to the possibility of further tightening as long as the US data stays on the current track. However, Governor J.Powell noted later that uncertainty still lingers on the potential fiscal measures to be implemented by the Trump’s administration.

In the US data space, Pending Home Sales are due along with speeches by Chicago Fed C.Evans (voter, centrist), Boston Fed E.Rosengren (2019 voter, dovish) and San Francisco Fed J.Williams (2018 voter, centrist).

USD/JPY levels to consider

As of writing the pair is losing 0.13% at 111.01 and a drop below 110.93 (low Mar.29) would aim for 110.12 (low Mar.27) and finally 109.91 (50% Fibo of the November-December rally). On the other hand, the immediate hurdle lines up at 111.81 (high Mar.22) ahead of 112.89 (high Mar.20) and then 113.00 (20-day sma).