USD/JPY rises to daily highs above 110.70 on renewed USD strength
|- USD/JPY started to edge higher in the early American session.
- US Dollar Index climbs into the positive territory near 92.20.
- 10-year US Treasury bond yield stays in the negative territory.
After spending the majority of the day in a very tight range near 110.50, the USD/JPY pair gained traction in the early American session and reached a daily high of 110.71. As of writing, the pair was up 0.17% on the day at 110.68.
DXY pushes higher after ADP data
Renewed USD strength seems to be helping USD/JPY edge higher. The US Dollar Index (DXY), which managed to post modest gains in the first two days of the week, is currently trading at a nine-day high of 92.19.
The monthly data published by the Automatic Data Processing (ADP) Research Institute showed on Wednesday that employment in the US private sector rose by 692,000 in June. This print came in stronger than the market expectation of 600,000 and helped the USD find demand.
On the other hand, the benchmark 10-year US Treasury bond yield is down 0.7% on the last day of the second quarter, making it difficult for USD/JPY to gather further bullish momentum.
There won't be any other high-tier data releases in the remainder of the day and quarter-end flows could ramp up market volatility toward the end of the European session.
On Thursday, the Tankan Large Manufacturing Index and the Non-manufacturing Index from Japan will be looked upon for fresh impetus.
Technical levels to watch for
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