USD/JPY consolidating in the mid-110.00s

The greenback is sharply lower vs. its Japanese counterpart on Tuesday, dragging USD/JPY to the area of daily lows in the 110.50 region.

USD/JPY focus on US data

The pair is prolonging its bearish bias today, retreating for the third consecutive session amidst a pick up in the risk aversion and down nearly two cents since last week’s lows above 112.00 the figure.

Spot stays on track to test YTD lows in the 110.00 neighbourhood today, losing ground in tandem with the poor performance from yields in the US money markets. In fact, the 10-year benchmark now seems to find some support around the 2.32% mark after plummeting from March’s tops near 2.63%.

In the US data space, February’s Factory Orders are due along with the speech by FOMC’s D.Tarullo (permanent voter, centrist), all ahead of Wednesday’s ADP report and Friday’s Non-farm Payrolls.

USD/JPY levels to consider

As of writing the pair is losing 0.39% at 110.47 and a drop below 110.36 (low Apr.4) followed by 110.15 (low Mar.28) and finally 110.09 (2017 low Mar.27). On the other hand, the immediate hurdle lines up at 111.61 (high Apr.3) ahead of 112.20 (high Mar.31) and then 112.42 (20-day sma).