- The pair finds support in the 109.60 region.
- US 10-year yields meet contention at the 3.0% level.
- US Markit’s advanced PMI, New Home Sales and FOMC next on tap.
The better tone in the Japanese safe haven currency dragged USD/JPY to fresh session lows in the 109.60 zone, where it appears to have found some decent contention.
USD/JPY looks to US data, FOMC
The pair dropped to fresh multi-day lows earlier in the session following a pick up in the risk-off sentiment, all in response to renewed jitters on US-China trade talks and the likelihood that President Trump could postpone his meeting with Kim Jong-un.
The down move in spot came in tandem with a correction lower in yields of the key US-10 year notes, which have so far found contention in the critical 3.0% neighbourhood.
Looking ahead, Markit will publish its advanced manufacturing gauge for the current month later in the session, seconded by New Home Sales and the FOMC minutes.
USD/JPY levels to consider
As of writing the pair is losing 0.85% at 109.96 and a break below 109.56 (low May 23) would target 109.14 (low May 11) en route to 108.64 (low May 4). On the other hand, the next hurdle lines up at 110.21 (200-day sma) followed by 110.24 (10-day sma) and finally 111.39 (high May 21).
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