OctaFX | OctaFX Forex Broker
Open trading account

USD/JPY loses further ground, testing 111.00

  • Spot keeps navigating 2-month lows.
  • USD still under pressure on US politics.
  • US 10-year yields tumbles to 2.32%.

USD/JPY came under renewed selling pressure on Monday and is now on its way to test the critical support at 111.00 the figure.

USD/JPY weaker on US yields

The pair is now accelerating the downside in response to a weak performance of yields in the US money markets. In fact, yields of the key US 10-year reference have gained downside momentum and are now testing the lower bound of the range near the 2.32% handle.

In the meantime, USD remains under pressure ahead of a key week for the US tax reform sponsored by the White House. In this regard, President Trump is expected to meet with Senate Republicans later in the week, most likely tomorrow.

In the US data space, October’s new home sales are due followed by the speech by Minneapolis Fed N.Kashkari (voter, dovish).

USD/JPY levels to consider

As of writing the pair is losing 0.43% at 111.05 facing the next down barrier at 110.16 (23.6% Fibo of 107.33-114.73) seconded by 109.55 (low Sep.15) and finally 107.33 (2017 low Sep.8). On the flip side, a breakout of 111.71 (200-day sma) would open the door to 112.16 (10-day sma) and finally 112.72 (high Nov.21).

UK: Economy guided by political vulnerability, uncertainty and Brexit - Westpac

BoE forecast merely two 25bp rate rises until late 2020 after their dovish hike and Brexit costs, political fragility and less fiscal room at the 22nd
Read more Previous

US: Increased likelihood of tax legislation this year - Nomura

The likelihood that US Congress will pass a major tax reform package by the end of 2017 appears to have increased, according to analysts at Nomura. K
Read more Next
Start livechat