USD/JPY weaker, breaks below 111.00
|The demand for the Japanese safe haven is picking up pace at the end of the week and is now dragging USD/JPY to test fresh daily lows in sub-111.00 levels.
USD/JPY in 3-day lows
The weekly decline in the pair has accelerated today following the softer tone from yields in the US money markets, with the 10-year benchmark challenging today’s lows around 2.24%.
JPY has also derived extra support from inflation figures in the domestic economy published earlier in the Asian session, where the Tokyo CPI showed consumer prices rose at an annualized 0.2% and 0.1% excluding food and energy costs.
Later in the NA session, the greenback should remain in centre stage in light of the second revision of Q1 GDP, seconded by April’s durable goods orders and the final print of May’s consumer sentiment gauged by the Reuters/Michigan index .
USD/JPY levels to consider
As of writing the pair is losing 0.77% at 110.95 with the immediate support at 110.51 (61.8% Fibo of 108.11-114.39) seconded by 110.21 (low May 18) and then 110.06 (200-day sma). On the flip side, a breakout of 111.99 (38.2% Fibo of 108.11-114.39) would open the door to 112.12 (high May 24) and finally 112.42 (20-day sma).
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