- USD / JPY continues to rise ahead of the American session.
- The 10-year US Treasury yield has risen more than 3%.
- The US Dollar Index climbs to multi-month highs above 93.00.
The pair USD/JPY it closed in positive territory for the fourth day in a row on Monday and extended its rally to a new yearly high of 110.39 on Tuesday. At time of writing, the pair was up 0.52% on the day at 110.35.
DXY retains its bullish momentum
The strong rally observed in US Treasury yields appears to be providing a positively correlated boost to USD / JPY. The benchmark 10-year US Treasury yield, which hit its highest level in nearly 15 months at 1,774%, is currently increasing 3% to 1,763%
Consequently, the USD continues to outperform its rivals with the US Dollar Index (DXY) advancing to its strongest level since early November at 93.20.
Meanwhile, S&P 500 futures are down 0.3% on the day, suggesting that the USD / JPY rally could remain limited if investors adopt a cautious tone in the second half of the day.
Data from Japan showed on Tuesday that retail trade in February contracted 1.5% annually and the unemployment rate held steady at 2.9%, compared with analysts’ estimate of 3%. Neither of these figures provoked a significant market reaction.
The US economic agenda will include the Conference Board’s Consumer Sentiment Index later in the session. Additionally, Federal Reserve Vice President for Supervision Randal Quarles and Federal Reserve Bank of New York President John Williams are scheduled to deliver speeches.
Technical levels
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