USD/JPY tumbles to fresh 2018 lows near 107.50

• Spot plummets to the mid-107.00s.
• USD selling pressure forcing the down move.
• US 10-year yields near 2.82%.

The increasing selling pressure around the greenback is dragging USD/JPY to record fresh YTD lows in the 107.55/50 band today.

USD/JPY attention to risk trends, US data

The continuation of the risk-rally in the global markets keeps weighing on the buck during the first half of the week and is now motivating the pair to visit the mid-107.00s, or fresh 2018 lows.

In addition, yields of the US 10-year benchmark have retreated to the 2.82% region, some 8 bp lower from multi-year peaks in the 2.90% neighbourhood seen earlier in the week.

Later in the week, the greenback is expected to remain under pressure in light of the publication of US inflation figures and retail sales for the month of January, all due tomorrow.

USD/JPY levels to consider

As of writing the pair is losing 0.91% at 107.67 facing the next support at 107.53 (2018 low Feb.13) seconded by 107.84 (low Sep.8 2017) and finally 101.15 (low Nov.9 2016). On the other hand, a breakout of 109.07 (10-day sma) would expose 109.55 (21-day sma) and then 110.48 (high Feb.2).