USD/JPY nears 111.00 as dollar's decline accelerates

• US Treasury yields down following disappointing US ISM Manufacturing PMI.
• USD/JPY heading toward 110.80, April low, en route to 110.50.

The USD/JPY pair is trading at fresh three-week lows in the 111.10 region, as dollar's sell-off gains momentum ahead of the Fed monetary policy decision. Market players are not expecting much of a change in the central bank's current stance, although latest data and Trump renewed criticism on the higher rates policy, undermined demand for the greenback ever since the week started.

The latest intraday decline is correlated to the behavior of US Treasury yields, weighed lower by disappointing manufacturing data. The yield on the benchmark 10-year Treasury note currently stands at 2.47%, its lowest since April 11. US indexes, however, hold on to the green, partially offsetting the effect of yields on the pair.

Japanese markets will be closed for most of the week, with little data related to the country able to affect it.

At current levels, the pair can extend its decline toward 110.80, April low, while below this last, the next support is 110.50, where the pair has multiple intraday lows. Resistances are located at 110.30, 110.75 and the 112.10 price zone.