- USD / JPY is registering strong gains at the beginning of the American session.
- The yield on the 10-year US Treasury rose nearly 4% on Tuesday.
- The US dollar index turned positive on the day above 90.50.
The pair USD/JPY It fell to a daily low of 105.18 during European trading hours, but turned north early in the US session and hit its best since October at 105.79. At time of writing, the pair was up 0.39% on the day at 105.77.
10-year US Treasury yield extends rally
The sharp rally seen in US Treasury yields appears to be driving the USD / JPY higher on Tuesday. At the moment, the benchmark 10-year US Treasury yield is at its highest level in nearly a year at 1,265%, an increase of 4.14% on the day. Meanwhile, the US Dollar Index is posting small daily gains at 90.55 after falling to 90.11 earlier in the day.
US data showed Tuesday that the Federal Reserve Bank of New York’s Empire State Manufacturing Index improved to 12.1 in February and beat the market expectation of 6%. There will be no further US data releases for the rest of the day.
Meanwhile, the major Wall Street indices started the day in positive territory, but the USD remains strong against its peers.
Early in the Asian session, Japan’s merchandise trade balance data and machinery orders will be considered for further momentum.
Technical levels
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