USD/JPY drops toward 110.50 as US T-bond yields continue to push lower

USD/JPY remains on track to snap six-day winning streak.
US Dollar Index retreats below 93.00 on Thursday.
10-year US T-bond yield is losing more than 3%.

Eren Sengezer FXStreet

After edging higher toward 111.00 earlier in the day, the USD/JPY pair turned south during the American trading hours and touched a daily low of 110.54. As of writing, the pair was trading at 110.57, losing 0.11% on a daily basis.

DXY slumps below 93.00 on Thursday

The sharp drop witnessed in the US Treasury bond yields weighed on the greenback in the second half of the day and allowed USD/JPY to reverse its course. The benchmark 10-year US T-bond yield is currently down 3.54% on the day at 1.682% and the US Dollar Index is losing 0.35% at 92.90.

Meanwhile, the upbeat market mood, as reflected by the impressive performance of Wall Street's main indexes, is putting additional weight on the USD's shoulders. Currently, the S&P 500 Index is trading at a fresh all-time high of 4,012, rising nearly 1% on the day.

Earlier in the day, the data from the US showed that the ISM Manufacturing PMI in March improved to its best level since 1983 at 64.7. This reading beat the market expectation of 61.3 and provided a boost to risk sentiment. On a negative note, the weekly Initial Jobless Claims rose to 719K in the week ending March 27 but the previous print got revised down to 658,000 from 685,000.

There won't be any macroeconomic data releases from Japan on Friday. Later in the day, the US Bureau of Labor Statistics' Nonfarm Payrolls (NFP) report for March will be featured in the US economic docket. However, the trading action is likely to remain subdued due to the Easter holiday.

Technical levels to watch for

USD/JPY

Overview
Today last price	110.6
Today Daily Change	-0.11
Today Daily Change %	-0.10
Today daily open	110.71

Trends
Daily SMA20	109
Daily SMA50	106.72
Daily SMA100	105.29
Daily SMA200	105.58

Levels
Previous Daily High	110.97
Previous Daily Low	110.28
Previous Weekly High	109.85
Previous Weekly Low	108.4
Previous Monthly High	110.97
Previous Monthly Low	106.37
Daily Fibonacci 38.2%	110.7
Daily Fibonacci 61.8%	110.54
Daily Pivot Point S1	110.33
Daily Pivot Point S2	109.96
Daily Pivot Point S3	109.64
Daily Pivot Point R1	111.03
Daily Pivot Point R2	111.34
Daily Pivot Point R3	111.72

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.

EUR/USD holds losses near 1.1850 as US, China holidays keep trade muted

EUR/USD opens the week on a softer note, trading near 1.1860 during the Asian session on Monday. Activity is likely to remain muted, with United States markets closed for the Presidents’ Day holiday, while Mainland China is also shut for the week-long Lunar New Year break.

GBP/USD flat lines as traders await key UK macro data and FOMC minutes

The GBP/USD pair kicks off a new week on a subdued note and oscillates in a narrow range, just below mid-1.3600s, during the Asian session. Moreover, the mixed fundamental backdrop warrants some caution for aggressive traders as the market focus now shifts to this week's important releases from the UK and the US.

Gold remains below $5,050 despite Fed rate cut bets, uncertain geopolitical tensions

Gold edges lower after registering over 2% gains in the previous session, trading around $5,030 per troy ounce during the Asian hours on Monday. However, the non-interest-bearing Gold could further gain ground following softer January Consumer Price Index figures, which reinforced expectations that the Federal Reserve could cut rates later this year.

Week ahead: Data blitz, Fed Minutes and RBNZ decision in the spotlight

The US jobs report for January, which was delayed slightly, didn’t do the dovish Fed bets any favours, as expectations of a soft print did not materialize, confounding the raft of weak job indicators seen in the prior week.

Global inflation watch: Signs of cooling services inflation

Realized inflation landed close to expectations in January, as negative base effects weighed on the annual rates. Remaining sticky inflation is largely explained by services, while tariff-driven goods inflation remains limited even in the US.

Ripple Price Forecast: XRP potential bottom could be in sight

Ripple edges up above the intraday low of $1.35 at the time of writing on Friday amid mixed price actions across the crypto market. The remittance token failed to hold support at $1.40 the previous day, reflecting risk-off sentiment amid a decline in retail and institutional sentiment.