USD/JPY eyes 110.00 on upbeat USTs

The Japanese Yen continues to lose ground at the beginning of the week, pushing USD/JPY to fresh tops in the boundaries of the 109.80 region.

USD/JPY looks to yields for direction

The pair is managing well to leave behind Friday’s fresh 4-month lows near 108.70 recorded in the wake of disappointing US inflation figures for the month of July.

In fact, market participants seem to have shrugged off US CPI results, while the renewed upside in US yields keep adding to the pair’s momentum. In fact, the key 10-year benchmark has now regained the 2.22% level and beyond, coming up from last week’s troughs in sub-2.18% levels.

Furthermore, geopolitical jitters appear somewhat alleviated for the time being, removing some strength from the demand for the safe haven JPY.

In the data space, Japanese advanced GDP figures showed the economy is expected to expand at an annualized 4.0% during the April-June period and 1.0% inter-quarter. Further out, US retail sales are expected tomorrow while June’s industrial production is due in Japan.

USD/JPY levels to consider

As of writing the pair is gaining 0.49% at 109.72 facing the immediate hurdle at 110.10 (23.6% Fibo of 114.51-108.73) would open the door to 110.82 (21-day sma) and then 111.06 (high Aug.4). On the flip side, a breach of 108.73 (low Aug.11) would open the door to 108.11 (2017 low Apr.17) and finally 102.54 (low Nov.3 2016).