USD/JPY intermarket: holding the bid above the 111 handle on yields picking up
|Currently, USD/JPY is trading at 111.09, down -0.04% on the day, having posted a daily high at 111.21 and low at 110.62.
USD/JPY got through the 111 handle and has since been ranging between 110.97 and the aforementioned high for the session so far. The recovery takes the price away from the cloud base and the ten-year yield spread is aiding the correction with US 10's making a session high of 2.2499%.
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From today's data, the dollar found traction in Markit services PMI and manufacturing PMI although June’s existing home sales contracted at a monthly -1.8%.
USD/JPY levels
"USD/JPY has recently failed at the 114.38 recent high, and also now eroded the 200-day ma circa 111.86, it remains on the defensive and there remains scope for losses towards the 110.00 region, the location of the 250-day ma. Above 114.50 will see an extension to the 115.51/62, this year's highs. Initial minor resistance lies circa 112.50/75," explained analysts at Commerzbank. On the flip side, Valeria Bednarik, chief analyst at FXStreet argued that additional declines below the daily low should see the price extending towards 110.00, and beyond if the greenback remains under selling pressure.
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