USD/JPY looks for direction amid mixed sentiment, sluggish USD
- USD/JPY remains directionless Wednesday in the initial Asian trading hours.
- US Dollar Index slips below 93.00 as risk sentiment improves.
- Higher US Treasury yields capped the downside for the US dollar.
The selling pressure in the US dollar keeps the USD/JPY pair on the edge in the Asian session. Despite the weakness in the greenback, USD/JPY manages to trade modestly lower as the Japanese Yen struggles to find demand on the domestic COVID-19 situation and risk-positive market environment.
At the time of writing, USD/JPY is trading at 109.69, up 0.06 % for the day.
The US Dollar Index, which tracks the performance of the greenback against its six major rivals, trades near 92.50 with 0.02% losses as investors shrugged off the spread of the Delta coronavirus variant after the US Food and Drug Administration on Monday granted full approval to the COVID-19 vaccine Pfizer/BioNTech.
New home sales in the US rose 1% to 708K in July, in line with the market expectations of 700K.
The US 10-year benchmark Treasury yields trade higher at 1.27% with 1.86%.
On the other hand, the Japanese Yen remained on a lower track after the news surfaced that Japan’s government plans to expand the coronavirus state of emergency to eight more states, Hokkaido, Miyagi. Gifu, Aichi, Mie, Shiga, Okayama and Hiroshima.
As for now, investors wait for the Japanese Coincident Index Final, US Durable Goods Orders 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.
