• The pair’s decline halted around the key 109.00 handle.
• US 10-year yields navigating fresh lows around 2.93%.
• US Non-farm Payrolls expected at 189K during April.

USD/JPY is looking to stabilize in the lower end of the weekly range following yesterday’s moderate pullback, so far finding decent support in the 109.00 neighbourhood.

USD/JPY attention on Payrolls

The pair has moderated its recent drop today, although it is still trading in the red territory for yet another session and extends the negative streak for the third day.

Declining US yields have removed tailwinds from the recent up move to fresh cycle tops beyond the psychological 3.0% level and instead pushed yields lower to the 2.93% zone, or weekly/monthly lows, collaborating with the downside in spot.

Later in the session, US Non-farm Payrolls (189K exp.) will drive the sentiment in the global markets in the near term and should be a crucial driver in the continuation (or not) of the current rally in the buck. Further attention will be on wage inflation and the unemployment rate (4.0% exp.).

USD/JPY levels to consider

As of writing the pair is losing 0.12% at 109.06 and a break below 108.96 (low May 4) would aim for 108.73 (100-day sma) and finally 108.16 (21-day sma). On the upside, the immediate hurdle is located at 110.03 (high May 1) followed by 110.22 (200-day sma) and then 110.48 (high Feb.2).