USD/JPY decline finds respite near 112.30

The upside momentum in the Japanese safe haven has gathered further traction during the second half of the week, now dragging USD/JPY to the 112.40/30 band, or daily highs.

USD/JPY lower on US yields, Trump

Spot has intensified its decline for the second consecutive session so far this week, coming down from as high as the 114.40 region seen last week to today’s lows in the 112.30 area.

The pair has retreated in tandem with the poor performance from yields in the US money markets, where the 10-year reference dropped to the 2.29% zone and it is now looking to stabilize.

In fact, heightened jitters following the Russia-gate have prompted the resurgence of the risk-off trade in the global markets, lending extra legs to the safe haven JPY and intensifying the already sharp sell of in the greenback to levels last traded in early November in terms of the US Dollar Index.

In the data space, the EIA’s weekly report on US crude oil inventories is only due in the US docket, while flash Q1 GDP figures in Japan are expected tomorrow.

USD/JPY levels to consider

As of writing the pair is losing 0.58% at 112.46 facing the next down barrier at 112.15 (20-day sma) seconded by 111.99 (38.2% Fibo of 108.11-114.39) and then 111.89 (55-day sma). On the other hand, a breakout of 112.89 (100-day sma) would aim for 112.91 (23.6% Fibo of 108.11-114.39) and finally 114.39 (high May 11).