fxs_header_sponsor_anchor

News

USD/JPY pares early gains, retreats to 110.70 area

  • USD/JPY lost its traction after rising to 111.00 on Monday.
  • 10-year US Treasury bond yield is down more than 3%.
  • US Dollar Index struggles to break above 92.00.

The USD/JPY pair advanced to a daily high of 111.00 during the European trading hours but reversed its direction in the early American session. As of writing, the pair was down 0.1% on the day at 110.70.

Falling US T-bond yields hurt USD/JPY

Earlier in the day, the renewed USD strength helped USD/JPY push higher. The US Dollar Index, which lost 0.5% last week, climbed to 92.00 area but struggled to break above that level in the absence of fundamental drivers. Currently, the DXY is virtually unchanged on a daily basis at 91.82.

Moreover, the benchmark 10-year US Treasury bond yield is losing more than 3% on Monday, putting additional weight on USD/JPY's shoulders.

The only data from the US revealed that the Dallas Fed Manufacturing Business Index declined to 31.1 in June from 34.9 in May. Although this reading missed the market expectation of 36.8, it was largely ignored by market participants. 

In the meantime, Wall Street's main indexes trade mixed at the start of the week, failing to provide a clue regarding the risk perception. At the moment, the Dow Jones Industrial Average is losing 0.44% while the Nasdaq Composite is rising 0.95% to trade at a new all-time high of 14,482.

On Tuesday, the Unemployment Rate and the Retail Trade data will be featured in the Japanese economic docket.

Technical levels to watch for

 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.


RELATED CONTENT

Loading ...



Copyright © 2024 FOREXSTREET S.L., All rights reserved.