- USD / JPY continues to push lower in the second half of the day.
- The yield on 10-year US Treasuries is down more than 3%.
- The US Dollar Index remains relatively quiet around 92.50.
The pair USD/JPY remains under bearish pressure in the second half of the day on Monday and was last seen trading at 109.12, shedding 0.4% on the day.
Markets become risk averse on Monday
On Friday, the sharp drop seen in US Treasury yields weighed heavily on USD / JPY. Although the benchmark 10-year US Treasury yield turned sideways during European trading hours, it turned south in the US session and caused USD / JPY to stretch lower. Currently, the 10-year US Treasury yield is down 3.5% to 1,237%.
Reflecting the risk-averse market environment, the S&P 500 and Nasdaq Composite indices were down 0.6% and 1.2%, respectively.
Meanwhile, the US dollar index is moving sideways around 92.50. Hours earlier, US data revealed that the New York Fed’s Empire State Manufacturing Index fell to 18.3 in August from 43 in July. This figure reached the market consensus of 2.
There will be no data release included in the Japanese economic record. Later in the day, July US industrial production and retail sales data will be analyzed for further momentum. However, movements in US Treasury yields are likely to continue to weigh on USD / JPY action before the FOMC releases the Minutes from the July meeting on Wednesday.
Technical levels
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