USD/JPY tumbles to lows near 112.30 on USTs

The greenback is now accelerating the downside vs. the Japanese currency, forcing USD/JPY to test lows in the 112.30 area.

USD/JPY weaker on US yields

Spot gathered extra selling pressure following the poor performance from US yields, where the 10-year benchmark is now testing lows in the 2.35% neighbourhood, around 5 bps lower than Friday’s post-payrolls tops around 2.40%.

The pair is navigating the area of multi-day lows today, reverting yesterday’s gains and receding further from tops near 113.50 seen in the wake of US non-farm payrolls.

In the US data space, the NFIB index dropped to 103 for the month of September vs. August’s 105.3 and 105.1 initially estimated. Ahead in the NA session, Minneapolis Fed N.Kashkari (voter, dovish) is due to speak ahead of the IBD/TIPP index.

USD/JPY levels to consider

As of writing the pair is retreating 0.28% at 112.37 facing the immediate support at 112.00 (21-day sma) seconded by 111.88 (200-day sma) and then 111.77 (61.8% Fibo of 114.51-107.33). On the other hand, a breakout of 113.44 (high Oct.6) would aim for 114.51 (high Jul.11) and finally 115.51 (high Mar.10).