- 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
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