- The dollar rises for the third day in a row against the yen.
- Bullish momentum in USD / JPY moderates after pullback in Treasury yields.
El USD / JPY is trading in positive territory on Monday, above 109.00, on the way to the third consecutive gain even though it lagged from the highs. Hours ago the price reached 109.36, reaching the lowest level since the beginning of June and then undertook a decline to 108.98.
The advance had been driven by the combination of higher yields on Treasuries and good timing in equity markets. A pullback in yields favored the USD / JPY downward correction. The 10-year rate hit a one-year high at 1.64% before returning to 1.60%.
The Wall Street futures point to a mixed open. Having spent most of the time in positive territory, stocks lost momentum in the last hour. This did not even cause the USD / JPY to fall further, reflecting some positive tone of the dollar against the main currencies.
The economic reports may have contributed to the strength of the dollar. The Empire Manufacturing Index rose more than expected to the highest since November 2018. The Federal Reserve’s decision will be released on Wednesday along with a new projection of macroeconomic variables from FOMC officials.
Technical levels
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