USD/JPY climbs to fresh 10-day highs above 110.50
- USD/JPY continues to edge higher in the American session.
- US Dollar Index stays in the positive territory around 93.00.
- 10-year US Treasury bond yield is up more than 1%.
After spending the Asian session moving sideways around 110.00 on Friday, the USD/JPY pair gained traction and reached its highest level in 10 days at 110.59. As of writing, the pair was up 0.35% on the day at 110.53. Unless USD/JPY drops below 110.00 before the end of the day, it will snap a two-week losing streak.
Market mood remains upbeat ahead of the weekend
Rising US Treasury bond yields and modest USD strength is helping USD/JPY preserve its bullish momentum in the second half of the day. At the moment, the 10-year US T-bond yield is up 1.25% on the day at 1.298% and the US Dollar Index is rising 0.15% at 92.98.
Earlier in the day, the data from the US revealed that the Markit Manufacturing PMI reached a new series high of 63.1 in July and beat the market expectation of 62. On a negative note, the Services PMI declined to 59.8 from 64.6, revealing that the economic activity in the service sector continued to expand at a softer pace than it did in June.
Despite the mixed PMI data, Wall Street's main indexes opened in the positive territory for the fourth straight day and the risk-positive market environment made it difficult for the JPY to find demand. Currently, the S&P 500 Index is trading at a new record-high of 4,396, rising 0.65% on a daily basis.
Technical levels to consider
Author
Eren Sengezer
FXStreet
As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.
