- USD/JPY edges higher on Tuesday in the initial part of the Asian session.
- US Dollar Index remains steady above 92.60 despite lower US Treasury yields.
- The Japanese Yen manages to gain on its safe-haven appeal.
The USD/JPY pair prints minute gains on Tuesday in the early Asian trading hours. The pair tested the high of 110.16 in the US session but retraced back to 109.90 after the release of the US consumer’s inflation expectations, which jumped to 5.2% in August. At the time of writing, USD/JPY is trading at 110.02, up 0.02% for the day.
The US Dollar Index (DXY), which measures the performance of the greenback against its six major rivals trades above 92.60, diverging its path from the bond yields. This, in turn, keeps USD/JPY higher.
The greenback gained traction amid reduced risk appetite as a resurgence in COVID-19 cases in vaccinated countries, such as Britain and Singapore and on the heightened expectations that the Fed would start to reduce bond purchases as soon as November.
On the other hand, the Japanese yen holds ground benefiting from its safe-haven appeal. The optimism in the political front after Taro Kono formally announced his candidature to lead the ruling Liberal Democratic Party (LDP) in the upcoming elections.
Meanwhile, an earthquake of 6.1 magnitudes was felt in Japan with no tsunami warning.
It is worth noting that, S&P 500 Futures were trading at 4,468, up 0.23% for the day.
As for now, investors are waiting for the US Consumer Price Index and Japanese Industrial Production data to gauge the market sentiment.
USD/JPY additional levels
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Recommended content
Editors’ Picks
EUR/USD alternates gains with losses near 1.0720 post-US PCE
The bullish tone in the Greenback motivates EUR/USD to maintain its daily range in the low 1.070s in the wake of firmer-than-estimated US inflation data measured by the PCE.
GBP/USD clings to gains just above 1.2500 on US PCE
GBP/USD keeps its uptrend unchanged and navigates the area beyond 1.2500 the figure amidst slight gains in the US Dollar following the release of US inflation tracked by the PCE.
Gold keeps its daily gains near $2,350 following US inflation
Gold prices maintain their constructive bias around $2,350 after US inflation data gauged by the PCE surpassed consensus in March and US yields trade with slight losses following recent peaks.
Bitcoin Weekly Forecast: BTC’s next breakout could propel it to $80,000 Premium
Bitcoin’s recent price consolidation could be nearing its end as technical indicators and on-chain metrics suggest a potential upward breakout. However, this move would not be straightforward and could punish impatient investors.
Week ahead – Hawkish risk as Fed and NFP on tap, Eurozone data eyed too
Fed meets on Wednesday as US inflation stays elevated. Will Friday’s jobs report bring relief or more angst for the markets? Eurozone flash GDP and CPI numbers in focus for the Euro.