- USD/JPY trades around 149.52, marking a slight gain of 0.02% from Monday.
- US 10-year Treasury bond yield climbs nine basis points to 4.70%, despite Philadelphia Fed Harker dovish comments.
- Japanese economic data to feature Balance of Trade; Yen watches for intervention threats.
USD/JPY fluctuates at around 149.52 as Tuesday’s Asian session begins after printing minimal gains of 0.02% on Monday. A risk-on impulse maintained the US Dollar (USD) underpinned against the Japanese Yen (JPY). Also, the rise in US Treasury bond yields weighed on the Yen.
US Dollar Index falls, capping gains; diplomatic efforts in Middle East conflict boost risk appetite
A risk-on impulse characterized Monday’s session amid diplomatic efforts to prevent a spill-over of the conflict between Israel and Hamas, with other players watching the developments for possible involvement in a possible escalation.
The US 10-year Treasury bond yield rose nine basis points to 4.70%, a tailwind for the USD/JPY pair, though the rally was capped by overall US Dollar weakness. The US Dollar Index (DXY), a basket of six currencies that trades against the US Dollar, dropped 0.43% to 106.21.
One of the drivers behind the overall US Dollar weakness is the Philadelphia Fed President Patrick Harker, who emphasized last week’s words that the US central bank could be done hiking interest rates. On the data front, the New York Empire State Manufacturing Index for October plunged less than the foreseen -7, at -4.6, though it slid compared to September’s data due to a deterioration in new orders, while prices paid eased, following the inflation downtrend.
Ahead in the week, the Japanese economic docket would feature the Balance of Trader, though the Yen would remain gathering direction on intervention threats by Japanese authorities. On the US front, the calendar will feature Retail Sales, Industrial Production, and Fed speakers.
USD/JPY Price Analysis: Technical outlook
After Monday’s trading day, the USD/JPY remains neutral to upward bias, exchanging hands above the Ichimoku Cloud (Kumo) and the Tenkan and Kijun-Sen levels. The major remains trading sideways, though slightly tilted to the upside. The first resistance is seen at last week’s high of 149.83, followed by the psychological 150.00 figure. Once cleared, the pair might reach the year-to-date (YTD) high of 150.16. On the flip side, if the major slumps below the Tenkan-Sen at 148.99, that would expose the Senkou Span A at 148.65 before sliding to the Kijun-Sen at 148.29.
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.
Recommended content
Editors’ Picks

AUD/USD: Gains capped by 0.6300 so far
AUD/USD succumbed to the selling pressure and receded to the 0.6230 zone after briefly piercing the key 0.6300 hurdle on the back of a choppy session in the US Dollar.

EUR/USD looks bid and near 1.0400
EUR/USD extended its weekly recovery and revisited the area above the 1.0400 level, although the move lacked follow through, with the pair eventually slipping back to the 1.0380 region in the wake of the closing bell on Wall Street.

Gold picks up pace above $2,900, Dollar weakens further
Extra selling bias in the Greenback now prompts Gold prices to regain the $2,900 mark per ounce troy and above despite the steady climb in US yields across the board.

BNB price enters 7-day winning streak as Binance liquidates over $5.9 billion from BTC, ETH and SOL holdings
Binance Coin (BNB) price surged past $650 on Wednesday, marking a 15% increase over seven consecutive days of profit. Market reports suggest that recent trades executed by Binance’s parent company could drive further BNB price gains.

How the European Union could counter US tariffs
With Trump ordering a 25% import tax on all steel and aluminium entering the US, trade tensions are inching closer to Europe. We take a closer look at how European policymakers could react. Spoiler alert: it's complicated.

The Best Brokers of the Year
SPONSORED Explore top-quality choices worldwide and locally. Compare key features like spreads, leverage, and platforms. Find the right broker for your needs, whether trading CFDs, Forex pairs like EUR/USD, or commodities like Gold.