USD/JPY dips to 111.30 as treasury yields retreat

The USD/JPY pair reverses a spike above 111.50 levels and now meets fresh selling interest, as the treasury yields accelerate its retreat across the curve, sending the US dollar slightly away from multi-week tops reached against its main rival.

The treasury yields and the US dollar extended its recent winning streak in Asia, as markets cheered peaceful conclusion to the Trump-Xi meeting, which in turn spurred risk-on moods and curbed demand for the safe-haven yen.

Meanwhile, markets remained unimpressed by upbeat Japanese current account data, as the USD dynamics dominated the moves behind the major so far. Focus now remains on the speech due by Fed Chair Yellen later today, which will provide fresh cues on a June Fed rate hike and balance sheet normalization.

USD/JPY Technical levels to watch             

The major finds immediate resistance at 111.53 (5 & 10-DMA). A break above the last, the major could test 111.97/112 (Mar 30 high/ psychological levels) and 112.69 (50-DMA) beyond the last. While to the downside, the immediate support is seen at 111.13/02 (10 & 5-DMA) next at 110.86 (classic S2/Fib S3) and below that at 110.51 (Apr 5 low).