USD/JPY eases from weekly highs, steadies near mid-110s
- 10-year US T-bond yield erases part of daily gains.
- Wall Street clings to small gains in the session.
- US Dollar Index looks to close in the positive territory for the third straight day.
The USD/JPY pair gained traction in the early NA session and rose to a fresh weekly high of 110.83 before going into a consolidation phase near mid-110s. As of writing, the pair was up 0.05% on a daily basis at 110.57
Rising US Treasury bond yields on Thursday fueled the pair's upsurge today. However, after rising more than 1%, the yield on the 10-year reference retreated from highs to allow the pair to start retracing its daily rally. At the moment, the yield is still up 0.43% on the day at 2.382%. Moreover, following a relatively upbeat start to the day, major equity indexes in the U.S. struggled to push higher in the session to suggest that investors are still not comfortable to move away from safer assets.
Providing an additional boost to the pair, the greenback gathered strength in the second half of the day after the data published by the U.S. Bureau of Economic Analysis showed that, according to the third estimate, the real GDP in the U.S. is expected to expand by 1.9% in the fourth quarter on a quarterly basis. The US Dollar Index, which rose to a three-week high of 97.30, is looking to close the third straight day in the positive territory around 97.20, where it's up 0.25% on the day.
Housing starts and construction orders from Japan will be released on Friday. Later in the day, the PCE price index, the Fed's preferred gauge of inflation, from the U.S. will be looked upon for fresh impetus.
Technical levels
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.
