USD/JPY weaker around 107.00, month-end flows keep weighing

The pair is posting moderate losses despite USD-strength.
US 10-year yields are consolidating in the lower end around 2.88%.
Preliminary US Q4 GDP figures came in at 2.5%, matching forecasts.

Pablo Piovano FXStreet

The broad based bid tone around the greenback is not echoing in USD/JPY, which remains on the defensive gyrating around the 107.00 neighbourhood for the time being.

USD/JPY supported near 106.90

After three consecutive sessions with gains, the pair has now reverted the sentiment and is trading well into the negative ground, coming down from yesterday’s weekly tops in the 107.65/70 band.

Month-end flows, mainly, continue to support the demand for the Japanese safe haven and are weighing down on the pair, which is also affected by the softer performance of US 10-year yields, currently navigating session lows around 2.88%.

In the data space, flash Q4 GDP figures showed the economy is seen expanding at an annualized 2.5%, as forecasted, while Pending Home Sales contracted 4.7% during last month, missing consensus.

USD/JPY levels to consider

As of writing the pair is losing 0.24% at 107.08 and a breakdown of 106.91 (10-day sma) would aim for 106.38 (low Feb.26) and then 105.53. On the other hand, the next up barrier aligns at 107.69 (high Feb.27) seconded by 107.92 (high Feb.21) and finally 107.95 (21-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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