- USD/JPY after retreating from fresh YTD high consolidates near 111.00.
- Lower US Treasury yields undermine the demand for the US dollar.
- Yen remains on the sidelines as risk sentiment improves after strong US data.
USD/JPY starts the fresh trading week on a lower note on Monday in the initial Asian trading hour. After testing the fresh YTD highs on Friday, the pair skid to lower levels breaking 111.00 mark.
At the time of writing, the USD/JPY pair is trading at 111.04, up 0.01% for the day.
The US Dollar Index (DXY), which measures the greenback performance against its six major rivals, fell below the 92.30 mark with 0.37% losses. The fall in the US dollar could be traced back to the lower US 10-year benchmark bond yields.
The US Treasury Yields traded at 1.43% with 0,10% losses, after the jobs report pointed to the continuation of the strong US economy rebound, but the market expected that the data was not strong enough to raise inflation and tightening concerns. The US Non-Farm Payroll added 850K jobs in June, much above the market estimates at 700K.
On the other hand, the Japanese yen held the ground after the Bank of Japan (BOJ) said that accelerating coronavirus vaccinations would pop up the economy. However, inflation is expected to remain subdued due to the fragile economic recovery.
As for now, the dynamics around the US dollar continue to influence the pair’s performance for the time being.
USD/JPY additional levels
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