USD/JPY finds support near 108.60

After dropping to as low as the 108.60 area, USD/JPY is now attempting a rebound to the 108.80/85 band following US releases.

USD/JPY weaker on USTs

Spot is down for the third session in a row so far today, testing lows in levels last seen in mid-April around 108.60 following the poor performance from yields in the US money markets.

In fact, yields of the 10-year reference have quickly plummeted to multi-week lows in the vicinity of the 2.16% level earlier in the session, losing around 12bp since weekly tops just above 2.28% recorded on Wednesday.

In the data space, the US consumer confidence tracked by the Reuters/Michigan index is expected to improve to 97.6 in August, surpassing prior surveys and somewhat adding some contention to the pair decline.

Further out, US politics, risk trends and US-NK headlines remain poised to keep driving the sentiment surrounding spot in the next weeks.

USD/JPY levels to consider

As of writing the pair is retreating 0.73% at 108.78 and a breach of 108.60 (low Aug.18) would aim for 108.11 (low Apr.17) and finally 102.54 (low Nov.3 2016). On the upside, the immediate hurdle emerges at 109.86 (10-day sma) followed by 110.10 (23.6% Fibo of 114.51-108.73) and then 110.38 (21-day sma).