USD/JPY comes down to test 109.30, session lows
- The pair trades on the defensive in the area of 109.30.
- US yields lost momentum and drop to lows around 2.95%.
- Advanced US Consumer Confidence, Williams’ speech next on tap.
The greenback is trading on a weak note vs. its Japanese counterpart at the end of the week, with USD/JPY coming down to test the lower bound of the range around 109.30.
USD/JPY looks to data, yields
The pair is down for the second session in a row on Friday after being rejected once again from the 110.00 neighbourhood (May 2/10 highs).
Lower yields of the key US 10-year note have been driving the sentiment around spot, coupled with renewed weakness around the buck in response to disappointing US inflation figures in April published yesterday.
In fact, yields of the US 10-year reference are navigating without clear direction in the 2.95% neighbourhood, losing ground after testing weekly tops beyond 3.0% level earlier in the week.
Later in the session, US Export/Import Prices are due along with the flash print of Consumer Sentiment tracked by the U-Mich and the speech by San Francisco Fed J.Williams (voter, centrist).
In addition, JPY should stay vigilant on the recent developments in the Middle East between Israel and Iran, which could spark a return to safer assets if tensions escalate.
USD/JPY levels to consider
As of writing the pair is losing 0.06% at 109.32 facing the immediate support at 108.72 (21-day sma) seconded by 108.64 (low May 4) and then 108.54 (100-day sma). On the upside, a break above 110.03 (high May 1) would open the door to 110.19 (200-day sma) and then 110.48 (high Feb.2).