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.

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