- USD/JPY extends its daily slide during the American session.
- 10-year US Treasury bond yield is down more than 4%.
- Wall Street's main indexes are suffering heavy losses on Tuesday.
After closing in the negative territory on Monday, the USD/JPY pair failed to stage a rebound and remains depressed in the second half of the day on Tuesday. As of writing, the pair was trading at a fresh weekly low of 109.62, losing 0.65% on a daily basis.
Safe-haven flows drag US T-bond yields lower
The negative shift witnessed in the market sentiment in the second half of the day is providing a boost to the JPY. Reflecting the risk-averse market environment, the S&P 500 and the Nasdaq Composite indexes are down 1.1% and 2.2%, respectively.
Meanwhile, the greenback remains on the back foot as the benchmark 10-year US Treasury bond yield is losing more than 4% on the day. Currently, the US Dollar Index is down 0.3% at 92.35.
Earlier in the day, the data from the US showed that Durable Goods Orders rose by 0.8% on a monthly basis in June, missing the market expectation for an increase of 2.1%. However, the market reaction to this data was largely muted ahead of the FOMC's policy announcements on Wednesday's.
Previewing the Fed's July meeting, "the Fed is set to hold firm with its bond-buying scheme and push back against any imminent tightening," said FXStreet analyst Yohay Elam. "The lack of action by the Fed does not mean stability in currency markets – printing more dollars for longer means a weaker greenback."
Federal Reserve Preview: Three reasons why Powell could pause, pummeling the dollar.
Technical levels to watch for
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