USD/JPY targets 108.00 amidst higher US yields

The pair is testing the upper end of the range near the 108.00 handle.
The upside in spot has been on the back of higher US yields.
US Existing Home Sales, Manufacturing PMI coming up next.

Pablo Piovano FXStreet

The greenback continues to appreciate vs. its Japanese counterpart on Monday and is now pushing USD/JPY to the vicinity of the 108.00 milestone, or fresh 2-month peaks.

USD/JPY looks to US data, yields

The pair is up for the fourth straight session so far today, challenging the area of 2-month tops in the boundaries of 108.00 the figure amidst higher US yields and a continuation of the solid performance around the buck.

In fact, yields of the key US 10-year note are trading closer to the critical 3.0% level and have been sustaining the renewed and quite moderate uptick in the pair is past sessions.

In addition, Japanese importers have been also collaborating with JPY-selling along with comments from BoJ’s Kuroda supporting an extension of the current loose monetary conditions.

News from the speculative community notes JPY net longs dropped to 3-week lows on the week to April 17, according to the latest CFTC report.

On the data front, US Existing Home Sales and Markit’s Manufacturing PMI will be the salient event in the US docket.

USD/JPY levels to consider

As of writing the pair is up 0.22% at 107.90 and a break above 108.28 (low Jan.26) would aim for 109.04 (100-day sma) and then 110.48 (high Feb.2). On the downside, the immediate support lines up at 107.29 (10-day sma) followed by 106.84 (21-day sma) and finally 105.66 (low Apr.2).

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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