USD/JPY under pressure near 110.30, ignores higher T-yields

The bears are seen control so far this session, keeping the USD/JPY pair slightly under pressure amid subdued trading activity seen around the greenback, as investors gear up for an eventful week ahead.

USD/JPY stuck in tight range

The spot is seen moving back and forth in a tight range, stuck between 10-DMA barrier on the upside, while 5-DMA support helps cushion the downside. A phase of bearish consolidation is seen in USD/JPY, as the bears take a breather after last Friday’s sell-off, triggered by resurgent yen demand amid rising US treasuries and a retreat in Wall Street stocks.

Despite, a broadly softer US dollar, the losses in the spot remains capped, as rallying treasury yields offer some support to the bulls, as attention turns towards the much-awaited June FOMC meeting, with a rate hike is widely expected.

Meanwhile, negative Japanese stocks combined with holiday-thinned trading, leaves the major directionless above 110 handle. Later today, we have a data-dry US docket, with the exception of the Fed budget balance, and hence, Tuesday’s US PPI figures remain in focus for fresh impetus.

USD/JPY Technical levels                 

Valeria Bednarik, Chief Analyst at FXStreet offers technical levels for the spot: “In the 4 hours chart, Friday's advance was rejected by selling interest around the 100 SMA, while technical indicators have managed to bounce from their mid-lines, aiming higher but well-below their daily highs, indicating limited buying interest around the pair. Support levels: 109.85 109.50 109.10 Resistance levels: 110.50 111.00 111.60.”