USD/JPY tumbles to lows around 109.50 ahead of US data

• The greenback loses momentum to the mid-109.00s today.
• US 10-year yields plummets to 2.95%, session lows.
• ISM Non-manufacturing, Trade Balance next of relevance in US docket.

The greenback is losing further momentum vs. its Japanese counterpart during the second half of the week and is now dragging USD/JPY to the area of daily lows in the mid-109.0ss.

USD/JPY focused on yields, data

Spot comes under renewed downside pressure today following decreasing yields in the US money markets, with yields of the key US 10-year note probing lows around 2.95%.

In the meantime, the pair is retreating for the second session in a row today after clinching fresh tops just above the critical 110.00 the figure on Wednesday. Lower US yields and a softer tone in the buck appear to be behind the ongoing correction lower.

Later in the US docket, the ISM Non-manufacturing will take centre stage followed by Trade Balance figures for the month of March, Durable Goods Orders and Factory Orders as well as the weekly report on the labour market.

USD/JPY levels to consider

As of writing the pair is losing 0.29% at 109.52 and a break below 109.15 (10-day sma) would aim for 108.97 (low Apr.27) and finally 1008.10 (21-day sma). On the upside, the immediate hurdle is located at 110.03 (high May 1) followed by 110.23 (200-day sma) and then 110.48 (high Feb.2).