USD/JPY moves to session highs near 111.60

USD/JPY has managed to regain the 111.00 handle and above after tumbling to fresh 3-week lows in he 110.20 area on Thursday.

USD/JPY weaker on risk-aversion, Trump

The pair is looking to extend the recovery from recent lows in the 110.20 area, amidst a renewed selling pressure surrounding the greenback while a bout if risk aversion in past session seems to still lend some support to the safe haven JPY.

In addition, yields in the US money markets remain on the defensive despite some tepid recovery in recent hours, with the 10-year reference (highly correlate with spot) gravitating around 2.24%, the lower bound of the monthly range.

The effervescence following the controversy around Trump-Russia-FBI seems somewhat mitigated at the end of the week, although the US political scenario stays poised to be a key driver in the sessions to come, particularly against the backdrop of rising rumours of a Trump impeachment. In addition, renewed tensions around US-North Korea could lend extra legs to the Japanese currency.

Nothing scheduled in Japan today data wise, whereas the speech by St. Louis Fed J.Bullard (2019 voter, centrist) is only due later in the NA session in an otherwise empty docket.

USD/JPY levels to consider

As of writing the pair is up 0.04% at 111.52 and a breakout of 111.76 (55-day sma) would aim for 111.99 (38.2% Fibo of 108.11-114.39) and finally 112.30 (20-day sma). On the other hand, the immediate support is located at 110.21 (low May 18) seconded by 109.78 (200-day sma) and then 109.59 (76.4% Fibo of 108.11-114.39).