- USD / JPY rises near the 109.00 level during the European session on Tuesday.
- The US dollar DXY index touched its lowest level since early January on Tuesday.
- The 10-year US Treasury yield falls for the fourth day in a row.
The pair USD/JPY it posted small losses on Monday and started to move up slowly on Tuesday. However, the lack of momentum in the move suggests that the pair is in a technical consolidation phase. At the time of writing, USD / JPY is up 0.08% on the day, trading at 108.85.
The USD remains on the defensive
On Monday, Widespread USD weakness forced USD / JPY to move lower. Additionally, the benchmark 10-year US Treasury yield lost 1% and weighed further on the pair. Although the DXY US Dollar Index has extended its decline to hit its lowest level since January at 89.53, the risk appetite sentiment in the markets seems to be making it difficult for the safe-haven JPY to find demand.
Meanwhile, the yield on the US 10-year Treasury is falling for the fourth day in a row, shedding nearly 1% on Tuesday on the day and not allowing the USD / JPY to gain recovery momentum.
Later in the session, the Conference Board will publish the consumer confidence report. In addition, data on new home sales and the Richmond Fed Manufacturing Index will also be included in the US economic calendar.
During the Asian session on Wednesday, data from the coincident index and Japan’s leading indicator index could generate further momentum.
USD / JPY technical levels
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