USD/JPY deflated from highs, near 111.30

The greenback has lost some momentum vs. its Japanese counterpart on Monday, prompting USD/JPY to return to the 111.30 region.

USD/JPY follows US yields lower

After climbing to fresh highs near 111.60 in early trade, the pair has come under renewed selling pressure as US yields – particularly the 10-year reference – have eased from daily highs as markets keep digesting Friday’s US Payrolls figures (98K).

The pair has regained the 111.00 handle and above earlier today, although it found some near term resistance around the 20-day sma at 111.68 after rebounding once again from another test of the 110.00 neighbourhood, or YTD lows in past sessions.

Looking ahead, the Fed’s Labor Market Conditions Index is due ahead of the speech by Chief J.Yellen on economic outlook at the University of Michigan.

USD/JPY levels to consider

As of writing the pair is gaining 0.15% at 111.27 with the initial hurdle at 111.58 (high Apr.10) ahead of 112.20 (high Mar.31) and then 112.80 (50% Fibo of March drop). On the other hand, a drop below 110.11 (low Apr.7) would open the door to 110.09 (2017 low Mar.27) and finally 108.64 (200-day sma).