USD/JPY steadies near 110.30, looks to close second straight day higher

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.

Eren Sengezer FXStreet

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

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.

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