USD/JPY stays firm near 109.00 ahead of US data

• The greenback remains firm vs. the Japanese Yen near the 109.00 handle.
• US 10-year yields bounce off lows and surpass 2.97%.
• US Consumer Confidence, New Home Sales next on tap in the NA session.

The Japanese safe haven continues to depreciate vs. its American counterpart on Tuesday and is lifting USD/JPY to fresh tops closer to the key 109.00 the figure.

USD/JPY in 2-month tops

Spot is advancing for the fifth consecutive session so far today, trading in the area of multi-week tops and approaching the 109.00 region, levels last seen in late February.

Higher US yields and investors refocusing on monetary policy have been fuelling the recent upside in the pair, bolstered at the same time by Japanese importers’ appetite and recurrent comments by BoJ officials defending the need for a continuation (for now) of the mega-loose monetary stance.

In the data space, US Consumer Confidence measured by the Conference Board, New Home Sales and the S&P/Case-Shiller Index are all due next.

USD/JPY levels to consider

As of writing the pair is up 0.10% at 1008.82 and a break above 108.91 (high Apr.24) would aim for 109.01 (100-day sma) and then 110.48 (high Feb.2). On the downside, the immediate support lines up at 107.54 (10-day sma) followed by 107.04 (21-day sma) and finally 106.86 (low Apr.17).