USD/JPY retreats to 110.00 as Comey gives testimony

The Japanese yen gained momentum during the last hours despite the rally in Wall Street. Equity prices reached fresh highs while USD/JPY retreated from 110.38 (daily high) to 109.98. 

Currently, the pair trades at 110.00/05, rising for the second day in a row, but off highs. The move to the upside in bond yields added support to the pair. The 10-year yield moved off multi-month lows, rising on top of 2.20%. In Wall Street, the Dow Jones is at daily highs up 0.34% while the Nasdaq gains 0.23%. 

In the US, former FBI Director Comey is giving testimony to a Senate Committee and a statement from President Trump is expected later. 

WH Deputy Press Secretary declined to admit whether Trump-Comey tape exist - Livesquawk

Technical outlook 

“The pair seems to be poised to correct higher, as technical indicators head north within positive territory in the 4 hours chart, although the price remains far below a bearish 100 SMA, around 110.90, while the immediate resistance comes at 110.50, the 61.8% retracement of its latest bullish run”, said Valeria Bednarik, Chief Analyst at FXStreet. 

According to her, above 110.90 the bearish pressure should ease further, and favor an advance up to the 111.00 region, while below 109.80, the risk will turn back towards the downside.