- USD / JPY recovers above the 110.00 level at the start of the European session.
- 10-year US Treasury yields rebound from levels below 1.30% and are up more than 3% on the day.
- The US dollar DXY index remains firm and towards the 92.50 level.
After moving lower during the Asian session on Friday, fluctuating in a tight trading range below 110.00, USD / JPY has gained traction to the upside at the start of the European session.
At the time of writing, USD / JPY is trading at 110.00, up 0.26% on the day.
The sharp rise in US Treasury yields underpins dollar demand and supports the upward movement of USD / JPY on Friday. Currently, the benchmark 10-year US Treasury yield is trading at 1.33% gaining more than 3% on the day.
Investors Rushed to the US Dollar as Market Volatility Increased amidst a feeling of risk aversion.
On the other hand, the Japanese yen has remained steadfast in its safe-haven appeal as investors’ risk appetite is weakened by rising coronavirus infections.
Earlier gain in the yen declined after a report revealed that The Bank of Japan is expected to lower this fiscal year’s economic growth forecast into new quarterly projections to be released next week.
For now, dynamics around the US dollar continue to influence the pair’s performance.
USD / JPY additional levels