|

USD/JPY makes progress toward 111.00 as US Treasury yields rise

  • USD/JPY manages to gain some traction in the  Asian trading hours.
  • US Dollar Index reclaims the 93.00 mark amid vaccine optimism.
  • Higher US Treasury yields capped the downside for the US dollar.

 USD/JPY pair edges higher in the Asian session. The pair opened lower but made a swift recovery and traveled to touch the intraday high at 109.85

At the time of writing, USD/JPY is trading at 109.80, up 0.20 % for the day.

The US 10-year benchmark Treasury yields trade higher at 1.30% with 0.54% following Pfizer-BioNTech vaccine approval from the US Food and Drug regulatory.

The US Dollar Index, which tracks the performance of the greenback against its six major rivals, trades rebounds toward 93.00  as investors shrugged off the spread of the Delta coronavirus variant after the vaccine optimism, which could aid the economic recovery.

New home sales in the US rose 1% to 708K in July, in line with the market expectations of 700K.

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

USD/JPY

Overview
Today last price109.79
Today Daily Change0.16
Today Daily Change %0.15
Today daily open109.63
 
Trends
Daily SMA20109.79
Daily SMA50110.17
Daily SMA100109.65
Daily SMA200107.58
 
Levels
Previous Daily High109.88
Previous Daily Low109.41
Previous Weekly High110.23
Previous Weekly Low109.12
Previous Monthly High111.66
Previous Monthly Low109.06
Daily Fibonacci 38.2%109.59
Daily Fibonacci 61.8%109.7
Daily Pivot Point S1109.4
Daily Pivot Point S2109.18
Daily Pivot Point S3108.94
Daily Pivot Point R1109.87
Daily Pivot Point R2110.11
Daily Pivot Point R3110.34

Author

Rekha Chauhan

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.

More from Rekha Chauhan
Share:

Editor's Picks

EUR/USD struggles near 1.1850, with all eyes on US CPI data

EUR/USD holds losses while keeping its range near 1.1850 in European trading on Friday. A broadly cautious market environment paired with a steady US Dollar undermines the pair ahead of the critical US CPI data. Meanwhile, the Eurozone Q4 GDP second estimate has little to no impact on the Euro. 

GBP/USD recovers above 1.3600, awaits US CPI for fresh impetus

GBP/USD recovers some ground above 1.3600 in the European session on Friday, though it lacks bullish conviction. The US Dollar remains supported amid a softer risk tone and ahead of the US consumer inflation figures due later in the NA session on Friday. 

Gold remains below $5,000 as US inflation report looms

Gold retreats from the vicinity of the $5,000 psychological mark, though sticks to its modest intraday gains in the European session. Traders now look forward to the release of the US consumer inflation figures for more cues about the Fed policy path. The outlook will play a key role in influencing the near-term US Dollar price dynamics and provide some meaningful impetus to the non-yielding bullion.

US CPI data set to show modest inflation cooling as markets price in a more hawkish Fed

The US Bureau of Labor Statistics will publish January’s Consumer Price Index data on Friday, delayed by the brief and partial United States government shutdown. The report is expected to show that inflationary pressures eased modestly but also remained above the Federal Reserve’s 2% target.

The weekender: When software turns the blade on itself

Autonomous AI does not just threaten trucking companies and call centers. It challenges the cognitive toll booths that legacy software has charged for decades. This is not a forecast. No one truly knows the end state of AI.

Solana Price Forecast: Mixed market sentiment caps recovery

Solana (SOL) is trading at $79 as of Friday, following a correction of over 9% so far this week. On-chain and derivatives data indicates mixed sentiment among traders, further limiting the chances of a price recovery.