- The USD / JPY pair lost its traction early in the US session.
- The US Dollar Index remains in positive territory.
- The 10-year US Treasury yield is posting modest losses after rising earlier.
The pair USD/JPY it rose to a daily high of 109.33 during European business hours, but lost its traction before the Wall Street opening bell. At time of writing, the pair was down 0.05% on the day at 108.83.
Falling US Treasury Yields Drag USD / JPY
Hours earlier, widespread USD strength and rising US Treasury yields provided a boost to USD / JPY. Although the US Dollar Index remains in positive territory near 89.90 in the first US session with the USD outperforming its risk-sensitive rivals, the 10-year US Treasury yield is down 0.4%, making it difficult for USD / JPY to stay bullish.
Meanwhile, the major Wall Street indices appear to be opening sharply lower with S&P Futures and Nasdaq Futures losing 1.3% and 1.75%, respectively.
There will be no high-level data releases on the US economic docket on Wednesday and USD / JPY is likely to continue reacting to fluctuations in US Treasury yields.
Later in the session, the FOMC will publish the Minutes from its April policy meeting. On the other hand, data from Japan showed that industrial production in March expanded 1.7%, compared to analysts’ estimate of 2.2%, but this reading was largely ignored by market participants.
Technical levels
.
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
