USD/JPY climbs to fresh weekly high of 106.50, retreats modestly
|- USD/JPY is rising despite broad-based USD weakness on Tuesday.
- 10-year US Treasury bond yield is up more than 4%.
- US Dollar Index continues to push lower, stays below 93.00.
The USD/JPY pair extended its daily advance and touched a fresh weekly high of 106.50 on Tuesday. As of writing, the pair was up 0.35% on a daily basis at 106.34.
Risk rally lifts USD/JPY on Tuesday
Although the USD continues to weaken against the majority of its major rivals, USD/JPY preserves its bullish momentum as the risk-on environment doesn't allow the safe-haven JPY to find demand. After closing the first day of the week in the positive territory, the US Dollar Index (DXY) turned south on Tuesday and was last seen losing 0.33% on the day at 92.98.
Easing US-China tensions following the upbeat tone in the latest round of trade talks and optimism for an effective coronavirus treatment allow risk flows to dominate the markets. Reflecting the positive market environment, the 10-year US Treasury bond yield is up more than 4% on the day and the S&P 500 remains on track to open at a fresh all-time high.
Later in the session, the Conference Board's Consumer Confidence Index and New Home Sales data from the US will be looked upon for fresh impetus. Earlier in the day, the data from the US showed that the Housing Price Index in June increased by 0.9% on a monthly basis but was largely ignored by market participants.
Technical levels to watch for
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