USD/JPY recovery stalled near 111.80, Yellen on sight

The greenback is trading almost unchanged vs. its Japanese peer on Tuesday, with USD/JPY hovering over the 111.70 region.

USD/JPY focus on Yellen

Spot is losing ground since last Friday following a pick up in the risk aversion sentiment and a correction lower in US yields.

In fact, renewed verbal escalation between North Korea and the US motivated investors to buy the safe haven JPY as of late, while yields of the key US 10-year benchmark are extending the leg lower following last week’s tops near 2.29%.

Looking ahead, the speech by Chief J.Yellen should keep the pair under pressure, while Cleveland Fed L.Mester (2018 voter, hawkish), FOMC’s L.Brainard (permanent voter, dovish) and Atlanta Fed R.Bostic (2018 voter) are also due to speak.

In the US data space, August’s new home sales are due seconded by the Conference Board’s gauge of consumer confidence for the month of September.

USD/JPY levels to consider

As of writing the pair is losing 0.02% at 111.70 and a breakdown of 111.48 (10-day sma) would open the door to 111.09 (100-day sma) and then 110.41 (21-day sma). On the other hand, the immediate up barrier is located at 112.11 (200-day sma) followed by 112.72 (high Sep.21) and finally 112.82 (76.4% Fibo of 114.51-107.32).