- USD / JPY turned north after falling to the 107.70 area.
- The US Dollar Index rises towards 91.00 after US data.
- The 10-year US Treasury yield remains in positive territory.
After closing the third consecutive week in negative territory, the pair USD/JPY it fell towards 107.70, but managed to rebound at the beginning of the American session. At time of writing, the pair was up 0.17% on the day at 108.10.
USD / JPY continues to react to US Treasury yields.
At the beginning of the week, the widespread selling pressure surrounding the dollar forced the USD / JPY to push lower. The US dollar index (DXY), which lost nearly 1% last week, touched its weakest level since early March at 90.68. However, the rebound observed in US Treasury yields gave USD / JPY a boost. At the moment, the DXY is up 0.12% on the day and the benchmark 10-year US Treasury yield is up 0.7%.
Meanwhile, US data showed durable goods orders rose 0.5% in March. Although this reading was worse than the market’s expectation of a 2.5% increase, the reaction was largely silent.
On Tuesday, the Bank of Japan (BoJ) will announce its Interest Rate Decision and publish the Monetary Policy Statement. Anticipating this event, “despite the March framework revision, the adjustments were small and did not herald any imminent danger that the BoJ would lower rates further,” analysts at the UOB Group said. “We still expect the Bank of Japan to further ease monetary policy in the next MPM, probably by re-accelerating its purchases of JGB and expanding its credit facilities.”
Technical levels
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