- USD / JPY is gaining more than 2% on Monday.
- The yield on 10-year US Treasuries soared to new multi-month highs.
- The US Dollar Index is approaching 93.00 after a sharp U-turn.
The pair USD/JPY it extended its rally into US business hours on Monday and touched its highest level since Oct. 20 at 105.59. At time of writing, the pair was up 2.15% on the day at 105.55.
JPY struggles to meet demand as a safe haven
The widespread USD strength and risk appetite provide a strong boost to USD / JPY at the beginning of the week.
Earlier in the day, Pfizer reported that its coronavirus vaccine showed more than 90% effectiveness in the phase three trial. This evolution caused a rebound in risk in financial markets and the main Wall Street indices opened at new all-time highs. At the moment, the S&P 500 and Dow Jones Industrial Average indices are up 2.7% and 3.8%, respectively.
Also, yields on US Treasuries soared and helped the dollar outperform its rivals. The US dollar index, which lost 1.75% last week, is currently up 0.7% on the day to 92.86 and the yield on the US 10-year bond is at its highest level since March at 0.953%, an increase. 16.6%.
Japan to release The trade balance will be released from Japan in the early trading hours of the Asian session, but risk sentiment is likely to remain the main driver for the markets.
Credits: Forex Street
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