USD/JPY advances to multi-month highs above 105.70 on surging US T-bond yields
|- USD/JPY is posting strong gains in the early American session.
- 10-year US T-bond yield is up nearly 4% on Tuesday.
- US Dollar Index turned positive on the day above 90.50.
The USD/JPY pair dropped to a daily low of 105.18 during the European trading hours but turned north in the early American session and touched its best level since October at 105.79. As of writing, the pair was up 0.39% on the day at 105.77.
10-year US T-bond yield extends rally
The sharp upsurge witnessed in the US Treasury bond yields seems to be fueling USD/JPY's upside on Tuesday. At the moment, the benchmark 10-year US T-bond yield is at its highest level in nearly a year at 1.265%, up 4.14% on a daily basis. Meanwhile, the US Dollar Index is posting small daily gains at 90.55 following a drop to 90.11 earlier in the day.
The data from the US showed on Tuesday that the Federal Reserve Bank of New York's Empire State Manufacturing Index improved to 12.1 in February and beat the market expectation of 6%. There won't be any other data releases from the US in the remainder of the day.
Meanwhile, Wall Street's main indexes started the day in the positive territory but the USD remains strong against its peers.
In the early Asian session, Merchandise Trade Balance and Machinery orders data from Japan will be looked upon for fresh impetus.
Technical levels to watch for
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