- USD / JPY remains on track to post losses for the second day in a row.
- The recovery in US Treasury yields helped the USD / JPY erase some of its daily losses.
- The major Wall Street indices are trading in positive territory.
After Tuesday’s crash, the pair USD/JPY it remained under bearish pressure in the first half of the day on Wednesday and fell to a monthly low of 109.11 before rebounding. At time of writing, the pair was down 0.25% on the day at 109.40.
US 10-Year Treasury Yield Gains Traction
Earlier in the day, widespread USD weakness and falling US Treasury yields caused USD / JPY to continue to push lower. However, the benchmark yield on the 10-year US Treasury, which lost more than 1% earlier in the day, reversed its direction and was last seen a rise from 2.5% to 1,316%, which helped the USD / JPY to erase a part of its daily losses.
Meanwhile, the positive change in market sentiment is making it difficult for the dollar to strengthen and limiting the rise in USD / JPY. Currently, the S&P 500 Index is up 0.7% on the day and the US Dollar Index posts modest losses at 92.55.
US data showed Wednesday that the New York Fed’s Empire State Manufacturing Index improved to 34.3 in September from 18.3 in August.
On the other hand, the governor of the Bank of Japan (BoJ), Haruhiko Kuroda, said on Wednesday that they will loosen monetary policy even more, for example, reducing interest rates if necessary. However, this comment had little to no impact on the JPY’s performance against its rivals.
There will be no high-level data releases from Japan on Thursday and August US retail sales data will be considered for further momentum later in the day.
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.
