USD/JPY gains traction on rising US T-bond yields, approaches 110.50

  • 10-year US T-bond yield stages a decisive recovery.
  • US Dollar Index stays near 96.50.
  • Coming up: Building permits, housing starts, and consumer confidence data from the U.S.

After staying relatively calm and closing the day a few pips above the 110 mark on Monday, the USD/JPY turned north today and started to erase last week's losses. As of writing, the pair was up 0.4% on a daily basis at 110.40.

The sharp drop that started in the second half of the previous week in the US Treasury bond yields continued on Monday to help the safe-haven JPY stay resilient against its peers. However, with the 10-year reference rising more than 1% on Tuesday, the positively-correlated pair gained traction. Moreover, modest gains seen in the major European equity indexes supported the pair's action. Meanwhile, the S&P 500 futures is adding 0.5% on the day, reflecting the improved market sentiment and suggesting that all Street is likely to start the day in the positive territory.

On the other hand, ahead of the housing market and consumer confidence data from the U.S., the US Dollar Index stays stuck in its consolidation channel near 96.50, letting the market's risk perception remain as the primary catalyst.

Earlier today, the BoJ in its Summary of Opinions report reiterated that the bank will take policy action pre-emptively if economic & price developments were to change.

Key technical levels

The pair could face the initial resistance at 110.65 (50-DMA) ahead of 111.10 (20-DMA) and 111.50 (200-DMA). On the downside, supports are located at 110 (psychological level/daily low), 109.70 (Mar. 25 low) and 109.40 (Jan. 27 low).

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.

Feed news

Latest Forex News

Editors’ Picks

EUR/USD steady around 1.1240 in ultra-thin holiday's trading

The EUR/USD pair bounced some 20 pips from its weekly low during the Asian session, now mute around 1.1240 with most market's off today. Softer-than-expected US housing data passed unnoticed.


GBP/USD battling around 1.3000

The GBP/USD pair is heading nowhere fast after bottoming for the week at 1.2978, amid lack of progress in Brexit negotiations.  Encouraging UK data failed to trigger Pound's demand.


USD/JPY: On track to close in the middle of its 50-pip weekly range below 112

The USD/JPY pair remains frozen below the 112 handle in the NA session and there is no reason for it to make a meaningful move as investors are already enjoying the Easter holiday.


The Tale of the Prosperous Consumer-US Retail Sales

American consumers asserted the right to spend in a grand fashion in March boosting retail sales to the fastest expansion in 18 months as the booming job market put the shutdown marked holiday season to rest.

Read more

Gold Forecast: Eyes 8-month rising trendline after weakest weekly close since December

The troy ounce of the precious metal lost around $17 this week and now looks to record its lowest weekly close since the end of December near $1275.

Gold News