USD/JPY rebounds above 110.00 despite broad USD weakness

  • USD/JPY regained its traction after falling earlier in the day.
  • US Dollar Index stays deep in the red below 92.00.
  • Recovering US Treasury bond yields help USD/JPY push higher.

After closing in the positive territory last week, the USD/JPY pair started the new week under strong bearish pressure and dropped to its lowest level in a week at 109.71. In the second half of the day, however, the pair regained its traction and moved into the positive territory. As of writing, USD/JPY was up 0.1% on the day at 110.30.

US T-bond yields turn north

Earlier in the day, the broad-based USD weakness and falling US Treasury bond yields weighed heavily on USD/JPY. The US Dollar Index, which gained 2% last week, dropped below 92.00 on Monday and the benchmark 10-year US Treasury bond yield touched its lowest level since late February at 1.354%.

Although the greenback continues to have a difficult time finding demand during the American trading hours, the sharp U-turn witnessed in T-bond yields is helping USD/JPY push higher. Currently, the 10-year US T-bond yield is up 2.7% at 1.482 while the DXY loses 0.48% at 91.87.

The only data from the US revealed on Monday that the Federal Reserve Bank of Chicago's National Activity Index improved to 0.29 in May from -0.09 in April. Nevertheless, market participants showed little to no reaction to this reading.

There won't be any high-tier data releases from Japan on Tuesday and USD/JPY is likely to continue to react to fluctuations in T-bond yields.

Technical levels to watch for


Today last price 110.28
Today Daily Change 0.07
Today Daily Change % 0.06
Today daily open 110.21
Daily SMA20 109.67
Daily SMA50 109.17
Daily SMA100 108.36
Daily SMA200 106.39
Previous Daily High 110.48
Previous Daily Low 109.94
Previous Weekly High 110.82
Previous Weekly Low 109.61
Previous Monthly High 110.2
Previous Monthly Low 108.34
Daily Fibonacci 38.2% 110.28
Daily Fibonacci 61.8% 110.15
Daily Pivot Point S1 109.94
Daily Pivot Point S2 109.67
Daily Pivot Point S3 109.4
Daily Pivot Point R1 110.48
Daily Pivot Point R2 110.76
Daily Pivot Point R3 111.03



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