USD/JPY bounces off lows, 110.00 back on sight

After dropping to session lows in the boundaries of 109.40, USD/JPY seems to have regained some buying interest and is now heading towards the 109.90 region.

USD/JPY attention to US yields, Comey

The pair is struggling to advance for the second session in a row today, looking to regain the 110.00 handle ahead of the key testimony by former FBI Chief James Comey before the Senate Intelligence Committee.

As usual, yields in the US money markets are behind the current recovery in spot, with the 10-year reference recording fresh 5-day peaks around 2.19% at the time of writing.

In the data space, Japanese GDP figures published earlier in the session showed the economy expanded 0.3% inter-quarter during the January-March period and 1.0% YoY, both prints coming in below initial expectations. In the US, the usual weekly report on the labour market is only due.

USD/JPY levels to consider

As of writing the pair is losing 0.03% at 109.78 and a breakdown of 109.09 (low Jun.7) would aim for 108.69 (low Apr.20) and finally 108.11 (2017 low Apr.17). On the other hand, the next hurdle lines up at 110.34 (23.6% Fibo of the May-June drop) followed by 110.46 (200-day sma) and finally 110.73 (high Jun.5).