USD/JPY flirting with daily highs near 109.70

The greenback is extending its rebound vs. the Japanese safe haven, pushing USD/JPY to fresh tops in the 109.70 region.

USD/JPY looks to US yields

Spot is so far advancing for the second consecutive session today, extending the bounce off recent yearly lows in the 107.30 region recorded last Friday.

The up move, as usual, is in tandem with the strong recovery of yields in the US money markets, pushing the key 10-year reference to the 2.15% neighbourhood today from last week’s multi-month lows in sub-2.02% levels.

The US Dollar Index (DXY), in the meantime, keeps alternating gains with losses in the area just below the critical 92.00 limestone, still unable to regain traction and move further north.

Data wise today, the NFIB index is due later in the NA session followed by JOLTs job openings.

USD/JPY levels to consider

As of writing the pair is gaining 0.29% at 109.72 and a break above 110.07 (38.2% Fibo of 114.51-107.33) would open the door to 110.67 (high Aug.31) and then 110.85 (55-day sma). On the other hand, the initial support lines up at 109.36 (10-day sma) seconded by 109.03 (23.6% Fibo of 114.51-107.33) and finally 107.33 (2017 low Sep.8).