- USD / JPY appears to break a four-day winning streak.
- The US dollar index struggled to achieve a significant rally.
- The yield on 10-year US Treasuries fell nearly 4% on Tuesday.
After advancing to its highest level since June at 109.24 earlier in the day, the pair USD/JPY it turned south and continued to push down during US business hours. At time of writing, the pair was trading at new daily lows, shedding 0.38% to hit 108.45.
Falling US Treasury Yields Weighs on the USD
The incessant selling pressure surrounding the dollar on Tuesday does not allow the USD / JPY to make a significant rally. In the absence of major macroeconomic data releases, the sharp drop in US Treasury yields caused the USD to weaken against its rivals. The US Dollar Index is currently consolidating its daily losses around 92.00, losing 0.35% on the day.
Following the last 3-year Treasury auction in the US, which produced a high yield of 0.355% compared to 0.196% in the previous auction, the yield on the 10-year Treasury fell almost 4% in the day to 1,539%.
In addition, the impressive performance of the major Wall Street indices makes it even more difficult for the United States to find demand. The S&P 500 and Nasdaq Composite indices rose 2.15% and 4.5%, respectively.
No macroeconomic data will be released on the Japanese economic calendar on Wednesday and the USD market valuation is likely to continue to drive the USD / JPY movements. Later in the day, the US Consumer Price Index (CPI) figures will be considered for further momentum.
Technical levels
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