USD / JPY retreats below 110.00 despite rising US Treasury yields.

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  • USD / JPY rose to a daily high of 110.07 at the beginning of the American session.
  • The yield on the 10-year US Treasury has increased by more than 2%.
  • The major Wall Street indices are suffering heavy losses.

The pair USD/JPY it continued to rise early in the US session and hit a daily high of 110.07. However, the pair struggled to preserve its bullish momentum and was last seen trading at 109.95, where it was up 0.25% on the day. On a weekly basis, the pair remains on track to close virtually unchanged for the fifth time in a row.

Safe-haven flows help JPY find demand

Widespread USD strength and rising US Treasury yields drove USD / JPY higher on Friday. The US dollar index is currently trading at its strongest since late August at 93.13 and the yield on the 10-year US Treasury is up 3% to 1,379%.

However, the risk-averse market environment, as reflected in the sharp decline seen in the major Wall Street indices, is helping the yen to show some resilience against the dollar. Currently, the Nasdaq Composite and S&P 500 indices are down 1% and 0.75%, respectively.

Hours earlier, US data showed the University of Michigan’s consumer sentiment index modestly improved to 71 in September from 70.3 in August. This reading disappointed the market expectation of 72.2, but failed to trigger a notable market reaction.

Technical levels

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