USD/JPY recovery stalled ahead of 111.00

The upside momentum in USD/JPY seems to have run out legs in the boundaries of the key barrier at 111.00 the figure today.

USD/JPY up on US yields

The pair is advancing for the first time after four consecutive pullbacks, although the 111.00 handle is proving to be quite a tough barrier for USD-bulls for the time being.

In the meantime, spot continues to trade in tandem with yields in the US money markets, where the 10-year reference has returned to the 2.34% area after climbing as high as levels above 2.36% in early trade.

USD/JPY faded yesterday’s spike to the mid-111.00s during the FOMC meeting, as the Committee failed to give markets further details on the timing and pace of the next rate hikes, although it left the door open for the Fed’s balance sheet to start shrinking later in the year.

On the data front, US Initial Claims rose by 234K WoW, taking the 4-Week Average to 250.00K from 254.50K, ahead of tomorrow’s critical Non-farm Payrolls for the month of March (180K exp.).

USD/JPY levels to consider

As of writing the pair is gaining 0.14% at 110.86 with the initial hurdle at 111.47 (high Apr.5) ahead of 112.04 (20-day sma) and then 112.20 (high Mar.30). On the other hand, a drop below 110.24 (low Apr.4) would open the door to 110.15 (low Mar.28) and finally 110.09 (2017 low Mar.27).