USD/JPY jumps towards 110.00 on solid USD recovery
- USD/JPY extends the previous day’s gains and edges higher in the Asian session.
- Higher US Treasury yields underpin the demand for the US Dollar.
- US Dollar Index pushes 92.88 on better than expected retail sales data.
The buying pressure in the US dollar pushes USD/JPY on the higher side on Friday morning. The pair rebounds from the low of 109.21 touched in the US session and remains in the process to end the week on a higher note.
At the time of writing, USD/JPY is trading at 109.79, down 0.01% for the day. The US Dollar Index (DXY), which tracks the performance of the buck against the basket of six major currencies trades a tad lower after hitting its two weeks high near 92.90 on Thursday. The US benchmark 10-year Treasury yields rose 3.2 basis points to 1.33% following higher-than-expected August’s US Retail sales data.
The US August’s Retail sales jumped 0.7% against the market consensus of 0.8% as the data released by the Census Bureau reported on Thursday whereas the Weekly Initial Jobless Claims grew 332,000 for the week ended September 11.
Investors cheered up the upbeat Retail sales data but remained cautious about the slight increase in the jobless claims data. Thus keeping the gains limited for the greenback.
In the meantime, as the latest Reuters poll, the US President Joe Biden public approval has dropped to the lowest level of his presidency, with Americans remained critical of his response to the coronavirus pandemic. On the other hand, the Japanese Yen lost its ground amid growing expectations of Fed tapering in November according to a Reuters opinion poll.
As for now, traders are waiting for the US Michigan Consumer Expectations 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.
