• USD/JPY remains on track to end the day in the positive territory.
  • 10-year US Treasury bond yield is up nearly 6% on Wednesday.
  • US stocks cling to daily gains as risk flows continue to drive markets.

The USD/JPY pair stayed relatively quiet below 110.00 in the first half of the day but gathered bullish momentum during the American session. As of writing, the pair was up 0.42% on the day at 110.31.

USD/JPY capitalizes on rallying bond yields 

The positive shift witnessed in market sentiment fueled USD/JPY's upside on Wednesday as the safe-haven JPY struggled to find demand. Although the greenback also had a difficult time preserving its strength, the sharp upsurge seen in the US Treasury bond yields provided an additional boost to the positively-correlated USD/JPY.

Currently, the benchmark 10-year US T-bond yield is rising 5.3% on the day at 1.228% and the S&P 500 Index is up 0.5% at 4,344.

On the other hand, the US Dollar Index, which managed to post gains in the previous four trading days, is down 0.2% at 92.79.

USD/JPY is likely to move sideways during the Asian session on Thursday due to the Marine Day holiday in Japan. Later in the day, June Existing Home Sales and the weekly Initial Jobless Claims data will be featured in the US economic docket.

Nevertheless, the risk perception is likely to continue to have a significant impact on USD/JPY's movements ahead of the weekend.

Technical levels to watch for

USD/JPY

Overview
Today last price 110.32
Today Daily Change 0.48
Today Daily Change % 0.44
Today daily open 109.84
 
Trends
Daily SMA20 110.48
Daily SMA50 109.95
Daily SMA100 109.46
Daily SMA200 106.95
 
Levels
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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