USD/JPY consolidative around 110.50 ahead US data

The greenback is trading on a weak note vs. the Japanese currency on Wednesday, with USD/JPY posting small losses around the 110.60.50 band.

USD/JPY focus on US data, yields

Spot is retreating for the first time after two consecutive advances, including fresh 2-month lows in sub-110.00 levels recorded on Wednesday. The prospects for the buck stay well into the bearish side for the time being, always under pressure from US politics and dwindling odds for a Fed move in the next months.

The pair is trading in tandem with the performance of yields in the US money markets, particularly the 10-year benchmark, which seems to have found some support near the 2.24% handle earlier in the week.

Ahead in the session, US initial claims are due followed by ISM non-manufacturing, Markit’s services PMI and June’s factory orders, all preceding the key payrolls due tomorrow.

USD/JPY levels to consider

As of writing the pair is losing 0.05% at 110.63 facing the next support at 110.16 (76.4% Fibo of 108.81-114.51) seconded by 109.91 (low Aug.1) and finally 108.81 (low Jun.14). On the other hand, a surpass of 110.92 (10-day sma) would open the door to 110.99 (61.8% Fibo of 108.81-114.51) and then 111.42 (100-day sma).