USD/JPY tumbles to lows near 111.70

The Japanese currency is trading on a firm note vs. its American counterpart at the beginning of the week, dragging USD/JPY to daily lows in the 111.70 region.

USD/JPY vigilant on USTs

The pair is navigating a narrow range so far on Monday, reflecting the sideline theme in yields of the US money markets, where the key 10-year is in a somewhat consolidative mode below 2.30%.

In the meantime, spot is down for the third session in a row today, testing the area of the key 200-day sma around 111.80/75 and flirting at the same time with 3-week lows.

In the data space, the NY Empire State index will be the salient point later in the NA session, while trade balance figures are the only publication of note in Japan ahead in the week.

USD/JPY levels to consider

As of writing the pair is retreating 0.04% at 111.77 facing the immediate support at 111.47 (low Sep.25) seconded by 111.14 (100-day sma) and then 111.11 (38.2% Fibo of 107.33-113.44). On the other hand, a break above 112.32 (21-day sma) would pave the way for a test of 112.46 (10-day sma) and finally 113.44 (high Oct.6).