- USD / JPY is recovering after Thursday’s sharp decline.
- The yield on 10-year US Treasuries rises more than 3% on Friday.
USD / JPY fell to its lowest level in more than two weeks at 109.00 on Thursday, but is recovering on Friday. It is trading at 109.73, the highest level of the day, up 0.46%.
The The sharp drop seen in US Treasury yields on Thursday hit the dollar hard and caused the USD / JPY to extend its weekly slide. The benchmark 10-year US Treasury yield lost more than 3% and the US dollar index fell below 92.00 for the first time since March 23.
The Friday the story has been reversed. The 10-year rate is at 1.67%, rebounding from 1.62%, which weakened the yen and metals in the market. In the next few hours the bond market will continue to be key. In the US, the Producer Price Index (PPI) for March will be published, which will be the only data, which is not expected to have an impact.
The ongoing USD / JPY bounce brought the price is back above the 20-day moving average and could imply the end of the downward correction. In case of exceeding 110.00, the dollar would gain more support to extend the rise. To the downside, a confirmation below 109.20 / 15 would suggest that the possibility of further declines is still on the table.
Technical levels
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