USD / JPY remains on track to close the sixth day in a row in positive territory.
The US dollar index erased much of the daily losses at the end of the US session.
The 10-year US Treasury yield is up nearly 2% on the day.
The USD / JPY pair extended its rally to a new yearly high of 110.96 on Wednesday, but lost traction in the second half of the day.
DXY recovers thanks to Treasury yields
Widespread selling pressure surrounding the US dollar early in the US session caused the pair to retreat below 110.50. However, USD / JPY turned north once again and was last seen gaining 0.37% on the day at 110.75 supported by a sharp rally seen in US Treasury yields.
The benchmark yield on 10-year US Treasuries is currently up nearly 2% on the day and the US Dollar Index records small daily losses at 93.20.
Meanwhile, the risk-positive market environment makes it difficult for the JPY to find demand and allows the USD / JPY to remain bullish. The S&P 500 Index hit a new all-time high at 3,994 on Wednesday and is currently up 0.8% at 3,990.
Later in the session, US President Joe Biden is expected to present his massive $ 2 trillion infrastructure plan. Earlier in the day, data released by the Automatic Data Processing Research Institute (ADP) revealed that employment in the U.S. private sector increased by 517,000 in March after a dismal 176,000 increase in February and helped. to improve the mood of the market.
On Thursday, Tankan Large Manufacturing Index and Jibun Bank Manufacturing PMI will appear on the Japanese economic record.
Technical levels
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