USD/JPY stays weak around 109.00

The greenback stays on the defensive so far on Friday, briefly dragging USD/JPY to the area of daily lows in sub-109.00 levels.

USD/JPY weaker on USTs

Spot came under further downside pressure at the end of the week following the soft performance of yields in the US money markets. Particularly, yields of the 10-year reference dropped to the 2.18% neighbourhood earlier in the session, looking to regain the 2.20% area at the time of writing.

In the meantime, the pair is down for the third session in a row today and stays so far on its way to close the second consecutive week with losses, all amidst the broader rangebound theme since the rejection from early July peaks in the mid-114.00s. Extra drivers for USD-weakness come from the US politics, with the White House once again in the centre of the debate.

In the data space, the only release will be the flash reading of US consumer sentiment tracked by the Reuters/Michigan index, expected to improve a tad to 94.

USD/JPY levels to consider

As of writing the pair is retreating 0.50% at 109.03 and a breach of 108.73 (low Aug.11) 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).