USD/JPY hangs near multi-month support around 109.00 ahead of US Retail Sales

USD/JPY extends the previous session’s decline on Tuesday.
US Dollar Index rebounds modestly above 92.50 on risk-off sentiment.
The Yen gains on a general flight to safety due to geopolitical unrest and coronavirus concerns.

Rekha Chauhan Independent Analyst

The USD/JPY pair remains under bearish pressure in the initial Asian trading hour. After testing fresh daily lows near 109.10 in the overnight session, USD/JPY makes futile attempts to recover above 109.20.

At the time of writing, USD/JPY is trading at 109.25, up 0.02 % for the day.

The US Dollar Index, which tracks the performance of the greenback against its six major rivals, trades higher above 92.60 with 0.13% gains following a rebound in the 10-year Treasury yields. Currently, the US Treasury bond yields are up 0.91% at 1.26%.

Meanwhile, Boston Federal Reserve Bank President Eric Rosengren said that another set of strong job data would be enough to satisfy the US central bank’s requirement to start reducing its monthly asset purchase program in September.

On the other hand, the Japanese yen gains were evaporated on rising delta variant concerns. The Japanese economy grew by 0.3% on a quarterly basis, rebounding more than expected.

As for now, investors wait for the US Retails Sales data to gauge the market sentiment.

USD/JPY additional levels

Author

Rekha Chauhan

Independent Analyst

Rekha Chauhan has been working as a content writer and research analyst in the forex and equity market domain for over two years.

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