USD/JPY testing session lows in sub-113.00 levels

The greenback continues to lose ground vs. its Japanese counterpart on Friday, now relegating USD/JPY to fresh daily lows in the 112.85/80 band.

USD/JPY weaker on falling US yields

Spot is accelerating its downside following a poor performance from yields in the US money markets, with the 10-year reference briefly testing the vicinity of 2.40%, down from Wednesday’s post-Yellen highs above 2.52%.

The pair is thus navigating weekly lows in sub-113.00 levels and continues to fade the earlier bull run to tops in levels just shy of 115.00 the figure following the hawkish tone from Yellen’s testimonies, reinforced by USD-supportive Fedspeak and auspicious releases in the US calendar.

Nothing scheduled in the US economy today, leaving the pair’s price action to the mercy of the risk appetite trends… and the performance of US yields.

USD/JPY levels to consider

As of writing the pair is retreating 0.35% at 112.85 and a breach of 112.03 (low Feb.2) would aim for 111.57 (low Feb.7) and then 111.98 (38.2% Fibo of the November-December up move). On the upside, the next hurdle aligns at 114.36 (high Feb.16) followed by 114.97 (high Feb.15) and finally 115.00 (20-day sma).