USD/JPY fades the spike above 109.50 on US GDP

The greenback now alternates gains with losses vs. its Japanese counterpart at the end of the week, lifting USD/JPY to fresh lows in the 109.50/60 band, just to reced some ground afterwards.

USD/JPY gains capped near 109.60

The pair stays in the area of 2-month tops well beyond 109.00 the figure today after the first estimate of US GDP showed the economy is seen expanding at an annualized 2.3% during the first quarter, surpassing initial forecasts.

Accompanying the move, yields of the key US 10-year benchmark managed to rebound from daily lows and are now flirting with the 2.98% milestone. It is worth mentioning that yields broke above the psychological 3.0% level for the first time since 2014 earlier in the week.

Later in the NA session, the final print of the US Consumer Sentiment tracked by the U-Mich index is due,

USD/JPY levels to consider

As of writing the pair is down 0.02% at 109.28 and a break below 108.90 (100-day sma) would aim for 108.19 (10-day sma) and finally 106.86 (low Apr.17). On the upside, the next hurdle lines up at 109.54 (high Apr.27) seconded by 110.25 (200-day sma) and then 110.48 (high Feb.2).