USD/JPY breaks above 109.50 as US yields keep rising
|- Yen tumbles amid higher US yields.
- US Dollar gains momentum during the American session.
The USD/JPY rose further and climbed to 109.56, reaching the highest level since May 3. The US dollar is having the best day in more than a month versus the yen and it heads toward the higher daily close in a month.
The US dollar gained momentum following higher-than-expected inflation data in the US. The numbers triggered a decline in Treasuries sending the 10-year to 1.68%, a monthly high.
The greenback is rising across the board and the yen is posting mixed results. While lower yields keep the yen pressured, risk aversion contributes to the demand for the safe-haven currency.
The Dow Jones is falling 1.29% and the Nasdaq tumbled 2.39%. The combination of risk aversion and higher yields are adding extra pressure on commodity and emerging market currencies.
USD/JPY breaking above 109.50
A consolidation above 109.50 would strengthen the technical outlook for the greenback versus the yen. The next resistance is seen at 109.85 followed by the 110.00 area. A decline back under 109.10 would alleviate the bullish tone.
Technical levels
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