- USD/JPY gained traction during the American trading hours.
- 10-year US Treasury bond yield is up 2% on Thursday.
- US Dollar Index continues to fluctuate in a relatively tight range.
The USD/JPY pair retreated to 109.40 area in the early American session on Thursday but managed to regain its traction. As of writing, the pair was up 0.23% on the day at 109.72.
USD/JPY capitalizes on rising US T-bond yields
The decisive rebound witnessed in the US Treasury bond yields seems to be helping USD/JPY push higher during the American trading hours. The benchmark 10-year US T-bond yield, which suffered heavy losses earlier in the week, is currently rising 2% on a daily basis.
Earlier in the day, the data from the US showed that the Initial Jobless Claims edged lower to 385,000 in the week ending July 31 from 399,000. Additionally, the US Census Bureau reported that the goods and services deficit widened to $75.7 billion in June from $71 billion in May. Nevertheless, investors largely ignored these readings and the US Dollar Index continues to move sideways around 92.20.
In the meantime, Wall Street's main indexes are up between 0.35% and 0.5% on Thursday, making it difficult for the safe-haven JPY to find demand as a safe-haven.
On Friday, the US Bureau of Labor Statistics' July labour market report will be watched closely by market participants. Previewing the Nonfarm Payrolls (NFP) data, "the greenback has room to fall only if the increase in jobs is considerably below estimates, but not catastrophic," said FXStreet analyst Yohay Elam.
Nonfarm Payrolls Preview: Why the dollar could surge in (almost) any scenario.
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD bounces off 1.1300 neighborhood; shows resilience below 23.6% Fibo.
EUR/USD drifts lower for the second straight day amid a further USD recovery from a multi-year low. The technical setup favors bulls and warrants caution before positioning for a deeper corrective fall. A sustained break and acceptance below 1.1300 could pave the way for some meaningful decline.
GBP/USD weakens below 1.3300 as US Dollar rises
GBP/USD extended its losses during Wednesday’s Asian session, trading around 1.3300 after pulling back from a seven-month high of 1.3424 recorded in the previous session. The pair weakened as investor appetite shifted back toward US assets, including the US Dollar, buoyed by a more optimistic tone from US President Donald Trump.
Gold price sticks to intraday losses amid positive risk tone; still holds comfortably above $3,300
Gold price moves away from the all-time peak touched on Tuesday amid receding safe-haven demand. Easing US-China tensions remains supportive of the risk-on impulse and weighs on the XAU/USD pair. The downside for the commodity seems limited as the USD bulls seem reluctant amid Fed rate cut bets.
Dogecoin lead double-digit gains across meme coins, with Shiba Inu, PEPE and BONK skyrocketing to new monthly highs
Top meme coins Dogecoin, Shiba Inu, PEPE and BONK lead the meme coin sector with double-digit gains on Wednesday following the crypto market recovery.
Five fundamentals for the week: Traders confront the trade war, important surveys, key Fed speech Premium
Will the US strike a trade deal with Japan? That would be positive progress. However, recent developments are not that positive, and there's only one certainty: headlines will dominate markets. Fresh US economic data is also of interest.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.