- USD / JPY lost its traction in the second half of the day.
- The yield on 10-year US Treasuries fell more than 2% on Thursday.
- The US Dollar Index remains on track to close below 90.00.
The pair USD/JPY it broke below 109.00 early in the US session and fell to a daily low of 108.75 before entering a consolidation phase. At time of writing, the pair was down 0.35% on the day at 108.83.
DXY falls below 90.00
The sharp decline seen in US Treasury yields is weighing on USD / JPY on Thursday. Following Wednesday’s rally due to aggressive tone from the FOMC, the benchmark 10-year US Treasury yield is currently losing 2.5% to 1.634%.
Meanwhile, falling yields make it difficult for the dollar to find demand as well. The US Dollar Index (DXY) is down 0.4% on the day at 89.37, preventing the USD / JPY from rallying. Risk appetite is also putting additional weight on the USD’s shoulders. Reflecting market optimism, the top three Wall Street indices are rising 0.7% to 2%.
Earlier in the day, US data revealed that weekly Initial Unemployment Claims fell to 444,000 last week from 478,000. This reading was slightly better than the market expectation of 450,000, but was largely ignored by investors.
On Friday, the National CPI data will be included in the Japanese economic agenda.
Technical levels
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