USD/JPY rebounds from 109.00 ahead of Fedspeak

• Spot met dip-buyers around 109.00.
• USD remains bid near 90.00.
• US 10-y yields near 2.78%.

The greenback remains bid so far this week and is now helping USD/JPY to rebound from the 109.00 neighbourhood.

USD/JPY offered ahead of Fedspeak

The Japanese safe haven picked up pace once again today, driving the pair to sub-109.00 levels earlier in the session, where it seems to have found some decent support. In this regard, the key support area in the 108.50/28 band continues to hold the downside for the time being.

Spot came under pressure pari passu with the fall in yields of the US 10-year benchmark, which have now regained 1 bp since lows in the 2.66% zone.

Later in the session, New York Fed W.Dudley (permanent voter, centrist) and Chicago Fed C.Evans (2019 voter, centrist) area due to speak ahead of the EIA’s weekly report on US crude oil supplies. Previously, Dallas Fed R.Kaplan (hawkish) favoured a gradual withdrawal from the accommodative stace, adding that neutral interest rate is likely to be lower than historic level.

USD/JPY levels to consider

As of writing the pair is losing 0.24% at 109.24 and a breakdown of 108.92 (low Feb.7) would open the door to 108.46 (low Feb.6) and finally 108.28 (2018 low Jan.26). On the flip side, the next hurdle lines up at 109.32 (high Feb.6) seconded by 110.04 (21-day sma) and then 110.48 (high Feb.2).