USD/JPY stays near session tops around 109.30/40

The Japanese Yen is extending its decline today, helping USD/JPY to advance to session peaks in the 109.30/40 band.

USD/JPY all the focus on Jackson Hole

Today’s up move has been sustained by a positive performance from yields in the US money markets. In particular, yields of the 10-year reference are testing the area of daily tops above the 2.18% handle, gaining more than a bp since yesterday’s lows.

In the meantime, the sentiment around the buck remains driven mostly by US politics, relegating to a secondary role any headlines related with the potential further tightening by the Federal Reserve in Q4.

Furthermore, spot should stay under pressure in light of the Jackson Hole Symposium, which kicks in today, and tomorrow’s speech by Chief J.Yellen.

USD/JPY levels to consider

As of writing the pair is gaining 0.26% at 109.31 and a break above 109.52 (10-day sma) would aim for 109.98 (21-day sma) and finally 110.85 (38.2% Fibo of 114.51-108.58). On the other hand, immediate contention emerges at 108.58 (low Aug.18) followed by 108.11 (low Apr.17) and then 102.54 (low Nov.3 2016).