USD/JPY approaches 109.00 ahead of US ADP, GDP

• The softer tone around the JPY pushes spot to the upper 108.00s.
• US 10-year yields rebound to daily highs near 2.98%.
• US ADP report, advanced Q1 GDP next of relevance in the docket.

The offered bias around the Japanese safe haven currency is helping USD/JPY to recover part of the recent ground lost and is now closer to the key barrier at 109.00 the figure.

USD/JPY up on yields rebound, looks to US data

The pair is reverting yesterday’s pullback to fresh 5-week lows despite the generalized selling bias around the greenback, supported by the ongoing rebound in yields of the key US 10-year note.

In fact, after testing fresh multi-week lows in the 2.75% area, yields of the key US 10-year reference are now hovering over the 2.87% neighbourhood, lending oxygen to the pair’s upside.

Later in the NA session, another estimate of the GDP figures during the first quarter will be the salient event seconded by the ADP employment report for the month of May. Consensus expects the US private sector to have added 186K jobs during this month.

USD/JPY levels to consider

As of writing the pair is gaining 0.12% at 108.90 facing the next up barrier at 109.74 (21-day sma) seconded by 110.21 (200-day sma) and finally 111.39 (high May 21). On the other hand, a break below 108.11 (low May 29) would aim for 107.78 (high Apr.13) and then 104.56 (2018 low Mar.28).