USD/JPY bounces off lows, testing 109.70

The greenback keeps the negative note vs. its Japanese counterpart on Wednesday, with USD/JPY dropping to fresh lows near 109.30 during overnight trade.

USD/JPY lower on US yields

Wednesday has started with an intensification of the risk-off sentiment, forcing the pair to shed ground to fresh YTD lows in the vicinity of the 109.30 area, levels last traded in November 2016.

Spot continues to trade in tandem with yields in the US money markets, where the 10-year reference seems to have found some support in the 2.28% region, just to gather traction afterwards to the current 2.30% neighbourhood. In the same line, the 10-year Japanese benchmark is navigating fresh 2017 lows in the 0.02% zone for the time being.

Nothing relevant from the US and Japanese dockets today, although markets’ focus should be on the interview with President D.Trump on Fox News during the European morning.

USD/JPY levels to consider

As of writing the pair is up 0.08% at 109.71 facing the next hurdle at 110.97 (high Apr.11) followed by 111.22 (20-days sma) and then 111.58 (high Apr.10). On the flip side, a drop below 109.35 (2017 low Apr.12) would open the door to 108.72 (200-day sma) and finally 107.84 (61.8% Fibo of the November-December up move).