USD/JPY retreats below 110.00 despite rising US T-bond yields

USD/JPY rose to a daily high of 110.07 in early American session.
10-year US T-bond yield is up more than 2%.
Wall Street's main indexes are suffering heavy losses.

Eren Sengezer FXStreet

The USD/JPY pair continued to push higher in the early American session and reached a daily top of 110.07. However, the pair struggled to preserve its bullish momentum and was last seen trading at 109.95, where it was still up 0.25% on the day. On a weekly basis, the pair remains on track to close virtually unchanged for the fifth straight time.

Safe haven flows help JPY find demand

The broad-based USD strength and rising US T-bond yields fueled USD/JPY upside on Friday. The US Dollar Index is currently trading at its strongest level since late August at 93.13 and the benchmark 10-year US T-bond yield is up 3% at 1.379%.

Nevertheless, the risk-averse market environment, as reflected by the sharp decline witnessed in Wall Street's main indexes, is helping the JPY show some resilience against the USD. Currently, the Nasdaq Composite and the S&P 500 indexes are down 1% and 0.75%, respectively.

Earlier in the day, the data from the US revealed that the University of Michigan's Consumer Sentiment Index improved modestly to 71 in September from 70.3 in August. This reading missed the market expectation of 72.2 but failed to trigger a noticeable market reaction.

Technical levels to watch for

USD/JPY

Overview
Today last price	109.96
Today Daily Change	0.24
Today Daily Change %	0.22
Today daily open	109.72

Trends
Daily SMA20	109.87
Daily SMA50	109.91
Daily SMA100	109.85
Daily SMA200	108.07

Levels
Previous Daily High	109.83
Previous Daily Low	109.21
Previous Weekly High	110.45
Previous Weekly Low	109.62
Previous Monthly High	110.8
Previous Monthly Low	108.72
Daily Fibonacci 38.2%	109.59
Daily Fibonacci 61.8%	109.45
Daily Pivot Point S1	109.35
Daily Pivot Point S2	108.97
Daily Pivot Point S3	108.73
Daily Pivot Point R1	109.96
Daily Pivot Point R2	110.2
Daily Pivot Point R3	110.58

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.

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