USD/JPY: recovery finds resistance at 109.40

The US dollar gained momentum across the board after the beginning of the US session and extend the recovery in the market, trimming part of the losses that followed the interview of Donald Trump yesterday. 

USD/JPY printed a fresh daily high at 109.39 and from the lows, it has risen more than 60 pips. Currently is trading at 109.25/30, up for the day, having the first daily gain after losing 200 pips during the previous three. 

The yen lost momentum in the market amid a correction in US bonds. The 10-year yield that a few hours ago bottomed at 2.218%, the lowest since November, is back above 2.25%. Equity prices in Wall Street are marginally higher. US economic data showed a solid labor market, a soft inflation and an improvement in consumer sentiment. 

US: Consumer sentiment inched upward in early April - UoM

Technical levels 

To the upside, resistance levels might be seen at 109.40 (intraday) followed by 109.60 (Apr 11 low) and 109.85 (Apr 12 high). On the flip side, support now might be seen at 109.15 (20-hour moving average), 109.00 and 108.70/75 (daily low).