USD/JPY stays in positive territory above 111.00 on rising US T-bond yields
- USD/JPY is edging higher following a weak start to the week.
- 10-year US Treasury bond yield is up more than 1% on Tuesday.
- Wall Street's main indexes remain on track to open higher.
After climbing above 112.00 for the first time in 2021 last week, the USD/JPY pair staged a deep correction and closed the previous three trading days in the negative territory. With the market mood improving on Tuesday, the pair managed to reverse its course and was last seen gaining 0.32% on the day at 111.22.
US T-bond yields push higher
Reflecting the risk-positive environment, US stock index futures are up more than 0.3% ahead of the opening bell. Moreover, the benchmark 10-year US Treasury bond yield is holding near 1.5%, rising more than 1% on a daily basis and helping USD/JPY cling to daily gains.
Later in the session, the IHS Markit will release the final version of its September Services PMI report. More importantly, the ISM's Services PMI will be looked upon for fresh impetus as well. Although investors expect the headline PMI to show an ongoing expansion in the service sector's business activity, Prices Paid Index and Employment Index components could trigger a market reaction. Ahead of these data, the US Dollar Index is up 0.15% at 93.95.
Earlier in the day, the data from Japan revealed that the Tokyo Consumer Price Index (CPI) advanced to 0.3% on a yearly basis in September from -0.4% in August but this reading was largely ignored by market participants.
Technical levels to watch for
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.
