USD/JPY rebounds modestly, remains below 110 ahead of Wall Street opening bell
- 10-year US T-bond yield rebounds on Friday.
- US Dollar Index stays in the red below the 98 mark.
- Coming up: Durable goods orders from the US.
The USD/JPY pair lost nearly 70 pips on Thursday as the dismal allowed the JPY to outperform its rivals. With the market sentiment improving slightly on Friday, the pair erased a small portion of this week's losses and was last seen trading at 109.70, adding 0.1% on a daily basis.
The 10-year US T-bond yield, which lost more than 8% this week to drop to its lowest level since late 2017, was last seen gaining 1.4% on the day to confirm the risk-on mood. Moreover, the S&P 500 Futures is rising 0.6% to show that Wall Street is likely to stage a rebound heading into the weekend.
However, none of the latest headlines surrounding the U.S.-China trade war conflict is hinting at a possible solution anytime soon, suggesting that today's market action is a technical correction in nature.
On the other hand, following its upsurge to a fresh 2-year high at 98.37 yesterday, the US Dollar Index made a deep correction and is now losing 0.05% on the day at 97.80, making it a little difficult for the pair to continue to push higher. In the early NA session, durable goods orders data from the U.S. will be looked upon for fresh impetus. With no other significant macroeconomic data releases scheduled in the day, the risk perception is likely to continue to impact the pair's action.
Technical levels to watch for
Author
Eren Sengezer
FXStreet
As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.
