USD/JPY challenging session lows near 113.00, FOMC on sight

The firm note around the greenback is not echoing on USD/JPY on Wednesday, dropping to fresh daily lows in the 113.00 neighbourhood for the time being.

USD/JPY attention to data, FOMC

Spot met increasing selling pressure since the beginning of the trading day following the poor performance of yields in the US money market, where the 10-year reference keeps the area of daily lows in the vicinity of 2.41%, down from the second session in a row.

The better tone in the US Dollar is so far contrasting with declining US yields today despite bets for a potential move by the Federal Reserve at the March meeting remain on the rise.

In the meantime, market participants remain cautious ahead of the release of the FOMC minutes, the speech by FOMC’s J.Powell (permanent voter, neutral) and results from Existing Home Sales.

USD/JPY levels to consider

As of writing the pair is losing 0.53% at 113.08 and a breakdown of 112.58 (low Feb.17) would aim for 112.03 (low Feb.2) and then 111.57 (low Feb.7). On the flip side, the next resistance is located at 113.78 (high Feb.21) ahead of 114.97 (high Feb.15) and finally 115.39 (high Jan.27).