- USD / JPY hit a new two-week high on Thursday.
- The US Dollar Index remains in negative territory near 93.00.
- The yield on the 10-year US Treasury is increasing by more than 7%.
The pair USD/JPY it gained traction during US business hours and rose to its strongest level in two weeks at 110.21. At time of writing, the pair was up 0.35% on the day at 110.16.
Rising US Treasury yields lift USD / JPY
Although upbeat market sentiment is making it difficult for the dollar to find demand on Thursday, the sharp rally seen in US Treasury yields is providing a boost to USD / JPY. Currently, the benchmark yield on the 10-year US Treasury is at its highest level in more than two months at 1.4%, rising 7.2% on the day. On the other hand, the US dollar index is down 0.43% to 93.03.
Reflecting the risk-positive market environment, the S&P 500 Index is up 1.4% to 4,456 and the Dow Jones Industrial Average is gaining 1.65%.
Earlier in the day, US data revealed that weekly Initial Unemployment Claims increased to 351,000 from 335,000. Additionally, Markit’s manufacturing PMI fell to 60.5 in September’s flash estimate, disappointing the market’s expectation of 62.5.
At the beginning of the Asian session on Friday, the national consumer price index and manufacturing PMI data from Jibun Bank will be included in the Japanese economic calendar.
Technical levels
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