USD/JPY climbs to fresh weekly highs near 108.50 supported by rising T-bond yields
|- USD/JPY continues to push higher after closing in the positive territory on Monday.
- 10-year US Treasury bond yield is rising for the third straight trading day.
- Wall Street's main indexes post modest losses on Tuesday.
Following last week's drop, the USD/JPY pair managed to stage a rebound on Monday and closed in the positive territory. The pair preserved its bullish momentum on Tuesday and touched its highest level in a week at 108.48. As of writing, the pair was up 0.35% on a daily basis at 108.46.
USD/JPY capitalizes on rising US T-bond yields
The ongoing recovery in the US Treasury bond yields helps USD/JPY edge higher. The benchmark 10-year US T-bond yield, which gained nearly 2% in the previous two trading days, is currently up 1.15% at 1.586%.
Meanwhile, Wall Street's main indexes push lower after the opening bell, helping the greenback stay resilient against its rivals. At the moment, the US Dollar Index is rising 0.1% at 90.92.
Earlier in the day, the Bank of Japan (BoJ) left its policy settings unchanged as expected. While commenting on the policy outlook, BoJ Governor Haruhiko Kuroda reiterated that they will ease monetary policy further without hesitation as needed.
On the other hand, the Conference Board's Consumer Confidence Index improved to 121.7 in April. Although this reading beat the market expectation of 113, it failed to trigger a meaningful market reaction. Later in the session, the 7-year US Treasury note auction will be watched closely by market participants. On Wednesday, Retail Trade data will be featured in the Japanese economic docket.
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.