- 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|
|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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