USD/JPY recovers modestly, trades above 109.80 on improving mood
|- USD/JPY is edging slightly higher in the American session.
- Wall Street's main indexes are trading in the positive territory.
- 10-year US Treasury bond yield is posting modest daily gains.
The USD/JPY pair dropped toward 109.50 area earlier in the day but reversed its direction in the second half of the day. As of writing, the pair was up 0.1% on the day at 109.83.
The improving market sentiment seems to be making it difficult for the JPY to find demand ahead of the weekend. Reflecting the upbeat mood, the S&P 500 and the Nasdaq Composite indexes are rising 0.35% and 0.9% respectively. Moreover, the 10-year US Treasury bond yield, which was down nearly 1% during the European session, is now up 0.4% on a daily basis and helping USD/JPY stay in the positive territory.
Nevertheless, the USD is also struggling to gather strength and limiting USD/JPY's upside. Currently, the US Dollar Index is flat on the day at 93.57.
USD/JPY outlook
Commenting on USD/JPY's recent action, "momentum indicators are turning ‘flat’ and for today, USD is likely to trade sideways, expected to be within a 109.55/110.05 range," said UOB Group analysts.
USD/JPY now moved into a consolidative phase – UOB.
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.