- USD/JPY is rising for the second straight day on Wednesday.
- US Dollar Index posts small daily gains above 93.00.
- 10-year US Treasury bond yield continues to push higher following Tuesday's rebound.
The intense flight to safety at the start of the week caused the USD/JPY pair to drop to its lowest level since late May at 109.07 on Monday. The positive shift witnessed in market sentiment, however, allowed USD/JPY to stage a decisive rebound. After rising nearly 50 pips and erasing the majority of Monday's losses on Tuesday, the pair extended its recovery and was last seen rising 0.26% on the day at 110.12.
USD/JPY capitalizes on rising US T-bond yields
Fueled by risk flows, major equity indexes in the US gained more than 1% on Tuesday and the 10-year US Treasury bond yield, which slumped to its weakest level since February on Monday, rose 2.6%. Currently, the benchmark 10-year US T-bond yield is rising 1.23% at 1.238%, helping USD/JPY preserve its bullish momentum.
In the meantime, the US Dollar Index is clinging to modest daily gains above 93.00 after closing the previous four trading days in the positive territory.
There won't be any high-tier data releases from the US in the remainder of the day and the risk perception is likely to remain the primary driver of USD/JPY's movements.
The US Department of Labor's weekly Initial Jobless Claims data on Thursday and the IHS Markit's preliminary July PMI reports from the US on Friday will be looked upon for fresh impetus in the second half of the week.
Technical levels to watch for
|Today last price||110.1|
|Today Daily Change||0.26|
|Today Daily Change %||0.24|
|Today daily open||109.84|
|Previous Daily High||109.96|
|Previous Daily Low||109.33|
|Previous Weekly High||110.7|
|Previous Weekly Low||109.71|
|Previous Monthly High||111.12|
|Previous Monthly Low||109.19|
|Daily Fibonacci 38.2%||109.72|
|Daily Fibonacci 61.8%||109.57|
|Daily Pivot Point S1||109.46|
|Daily Pivot Point S2||109.08|
|Daily Pivot Point S3||108.84|
|Daily Pivot Point R1||110.09|
|Daily Pivot Point R2||110.34|
|Daily Pivot Point R3||110.72|
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