USD/JPY advances above 109.00, tests weekly tops

The Japanese currency keeps the weekly bearish note unchanged today, with USD/JPY now climbing beyond the 109.00 handle.

USD/JPY propped up by US yields

The pair is posting its second consecutive session with gains so far today, backed by the continuation of the upbeat sentiment around US yields, with the 10-year reference regaining the vicinity of 2.23% after bottoming out at 2.165% on Tuesday, or YTD lows.

The greenback, in the meantime, is trading on the defensive vs. almost the rest of its G10 peers, while the US Dollar Index seems to have found some decent support in fresh 3-week lows near 99.30 earlier in the session.

Data wise, Initial Claims and the Philly Fed Manufacturing Index for the month of April are due later in the NA session, while Japanese trade surplus shrunk to ¥615 billion in March (vs. ¥576 billion forecasted and February’s ¥813 billion).

USD/JPY levels to consider

As of writing the pair is advancing 0.18% at 109.06 and a surpass of 109.23 (high Apr.18) would aim for 109.86 (23.6% Fibo of the March-April drop) and then 110.22 (20- day sma). On the other hand, the immediate support lines up at 108.29 (low Apr.18) followed by 108.11 (2017 low Apr.17) and finally 105.99 (200-month sma).