USD/JPY finds some respite near 107.30, 2017 lows

The downside pressure around the greenback seems to have found some support in the 107.30 region, with USD/JPY now looking to regain the 107.70/80 band.

USD/JPY rebounds on USTs

After recording fresh YTD lows in the 107.30 area earlier in the session, spot seems to have found some buying interest following the rebound in US yields.

In fact, yields of the US 10-year reference are now hovering over the 2.06% zone, up around 4 bp since earlier 2017 lows in sub-2.02% levels.

The soft performance in US yields are impacting on the US Dollar Index as well, dragging it to test fresh 2017 lows in levels just above 91.00 the figure, last seen in early January 2015.

In the meantime, USD stays under pressure amidst increasing geopolitical concerns and rising uncertainty in the US political scenario in spite of the recent deal between President Trump and Democrats on the debt ceiling, at least until mid-December.

USD/JPY levels to consider

As of writing the pair is retreating 0.75% at 107.74 and a break below 107.32 (2017 low Sep.8) would aim for 102.54 (low Nov.3 2016) and finally 101.15 (low Nov.9 2016). On the upside, the initial hurdle aligns at 109.02 (23.6% Fibo of 114.51-107.32) followed by 109.34 (10-day sma) and then 109.44 (21-day sma).