- USD / JPY struggles to stay above 104.00 on Thursday.
- The 10-year US Treasury yield fell more than 2%.
- The US Dollar Index remains above 92.50 ahead of US data.
The pair USD/JPY it fell to its lowest level in nine days at 103.64 on Wednesday and rebounded on Thursday. However, the pair was unable to preserve its bullish momentum after climbing to 104.21 and erased a portion of its daily gains. At time of writing, the pair is still up 0.15% on the day at 104.00.
Focus shifts to mid-tier US data
After closing the day in positive territory on Wednesday, the 10-year US Treasury yield turned south on Thursday, making it difficult for USD / JPY to extend its rebound. For the time being, the 10-year Treasury yield is down 2.23% on the day to 0.860%.
Meanwhile, the risk averse market environment helped the dollar find demand and allowed the USD / JPY to limit its losses.
Ahead of the weekly data for initial jobless claims, the US Dollar Index is up 0.25% on the day at 96.25. Other US macroeconomic data releases will include existing home sales, the Philadelphia Fed Manufacturing Index, and the Kansas Fed Manufacturing Activity Index.
Investors will also keep a close eye on the performance of the major US equity indices S&P 500 futures are currently posting small daily losses. If Wall Street manages to turn green after the opening bell, the DXY could lose its traction and cause the USD / JPY to pull back below 104.00.
In the first trading hours of the Asian session, Jibun Bank’s manufacturing PMI will be the only data included in the Japanese economic agenda.
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