- The yen falls as US yields soar after a long weekend in America.
- USD / JPY could post the highest daily close in nearly a month.
USD / JPY broke above 110.00 and rose to 110.25, reaching the highest level since last Wednesday. It is around 110.15 / 20, with a positive tone supported by a stronger dollar in general. From the daily low, the pair moved up a few pips, moving from the lower limit of the current range to test the upper part.
Stocks down, yields up
After the long holiday weekend, US stocks fell further. The Dow Jones lost 0.72% and the Nasdaq 0.01%. Treasuries rose, with the 10-year yield trading at 1.38%, the highest level since mid-July. Higher yields are the key driver in USD / JPY on Tuesday.
The donar is also on the rise against its G10 rivals. DXY is up for the second day in a row, recovering from the monthly low, and is up 0.28%, modestly below 92.50.
Still lateralized around 110.00
Since mid-August, USD / JPY is hovering around 110.00, unable to move away from that area. A daily close around the current level would be a positive development, pointing to a possible breakout of the range. On the other hand, the lower bound of the range can be seen around 109.60. A close below that area should clear the way for further losses, targeting the 109.00 zone.
Technical levels
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