USD/JPY erases gains as US yields decline

The yen strengthened against the US dollar after the beginning of the American session amid a decline in US bond yields. USD/JPY peaked at 111.60 before reversing to the downside. Currently, it trades at 111.10/15, marginally higher for the day. 

Earlier the pair moved with a bullish bias despite mixed US data. Initial jobless claims rose 257K above the 241K expected, March Durable Goods Orders rose 0.7% below the 1.2% of market consensus while pending home sales dropped 0.8% (against expectations of a 1% decline). Tomorrow the first reading of Q1 GDP growth will be released. 

US: Weekly initial claims was 257,000, an increase of 14,000 from the previous week

US Dollar preserves gains above 99

The US 10-year yield dropped below 2.30% and weakened the pair. Also, a mix performance of equity indexes in Wall Street affected the dollar. The Dow Jones is down 0.15%, the S&P500 drops 0.15% while the Nasdaq gains 0.19%. 

Technical levels 

From the highs, the pair lost 50 pips in sixty minutes. It reached a session low at 111.05. The first support is seen around the 111.00 handle, followed by 110.85 (Apr 26 low) and 110.25/30 (Apr 6 low). On the flip side, resistance could be located at 111.40 (Asian session high), 111.60 (daily high) and 111.75/80 (Apr 26 high).