USD/JPY rises above 110.00 as US T-bond yields extend rebound

  • 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
Daily SMA20 110.48
Daily SMA50 109.95
Daily SMA100 109.46
Daily SMA200 106.95
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



Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news

How do emotions affect trade?
Follow up our daily analysts guidance

Subscribe Today!    

Latest Forex News

Latest Forex News

Editors’ Picks

EUR/USD tumbles to five-week low on rising US yields, energy crisis

EUR/USD has tumbled below 1.17, hitting the lowest since August 20 as Europe struggles with soaring gas prices and China suffers power cuts. US Consumer Confidence missed with 109.3 points. Fed Chair Powell explains the bank's taper signal.


GBP/USD plummets below 1.3550 on stronger dollar, energy crisis

GBP/USD has plunged under 1.3550, the lowest since January. Markets are in a sour mood as China suffers from power outages. The British army is on standby to mitigate fuel shortages. The pound ignores the hawkish comments from BOE Governor Bailey.


Gold bears aiming to retest the year low

Supply change issues are taking their toll on global economic growth. Powell noted inflation is more concerning than earlier this year. XAU/USD has fallen to a fresh one-month low and has room to extend its slump

Gold News

Crypto markets prepare for a bullish October

Bitcoin price shows signs of bullish breakout as it traverses a falling wedge. Ethereum price also displays an optimistic outlook as it forms a descending parallel channel.

Read more

Why is Apple stock falling?

Apple stock (AAPL) took the rise in bond yields poorly on Monday as tech stocks and the Nasdaq suffered disproportionally. The Nasdaq closed the worst performing index of the day -0.81% while the Dow was actually positive and the S&P 500 lost just over a quarter of a percent.

Read more