USD/JPY probing lows near the 109.00 handle

Pablo Piovano FXStreet

The Japanese Yen has recovered its shine on Friday, now dragging USD/JPY to another test of the 109.00 mark, or daily lows.

USD/JPY lower on US yields

Spot gained further downside traction following a softer tone from yields in the US money markets, with the 10-year reference testing the area of daily lows around 2.23%, down from weekly peaks in the vicinity of 2.26%.

In the meantime, the greenback - gauged by the US Dollar Index (DXY) – has recovered the smile so far, advancing to 3-day tops near the 99.90 area ahead of today’s releases in the US docket.

In the data sphere, advanced Japanese Manufacturing PMI has ticked higher to 52.8 in April while US Manufacturing PMI and Existing Home Sales are expected later in the NA session.

USD/JPY levels to consider

As of writing the pair is retreating 0.20% at 109.10 facing the next support at 108.69 (low Apr.20) followed by 108.29 (low Apr.18) and finally 108.11 (2017 low Apr.17). On the other hand, a surpass of 109.49 (high Apr.20) would aim for 109.86 (23.6% Fibo of the March-April drop) and then 110.12 (20- day sma).

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

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