USD/JPY approaching lows around 110.50

The greenback continues to lose momentum on Tuesday, now dragging USD/JPY to the area of daily lows in the mid-110.00s.

USD/JPY deflates from 111.60

The pair is posting losses for the second session in a row today, reverting yesterday’s spike to multi-day tops near 111.60.

Yields in the US money markets have faded the recent up move. In particular, the 10-year reference dropped from tops in the boundaries of the 2.40% level to the current area below 2.35%, accompanying the downside in spot.

In the data space, US NFIB’s index matched estimates in March at 104.7 while JOLTs Job Openings and the speech by Minneapolis Fed N.Kashkari (voter, dovish) are due later in the NA session.

In Japan, February’s Industrial Production will be the most relevant publication this week, expected to have expanded at a monthly 2.0% during February.

USD/JPY levels to consider

As of writing the pair is losing 0.31% at 110.60 and a drop below 110.11 (low Apr.7) would open the door to 110.09 (2017 low Mar.27) and finally 108.68 (200-day sma). On the other hand, the initial hurdle is located at 111.45 (20-day sma) followed by 111.58 (high Apr.10) and then 112.20 (high Mar.31).