USD / JPY updates weekly highs, approaching 110.00 thanks to USD strength

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  • The USD / JPY pair retains its bullish momentum on Friday.
  • The US Dollar Index climbs above 90.50 in the second half of the day.
  • The yield on 10-year US Treasuries has risen more than 2%.

The pair USD/JPY continues to rise ahead of the weekend with the dollar preserving its strength during US trading hours. At time of writing, the pair was trading at its highest level in a week at 109.84, rising 0.48% on the day.

DXY extends daily rally beyond 90.50

The USD market valuation remains the main driver of USD / JPY movements on Friday. In the absence of high-level macroeconomic data releases, the more than 2% rise in benchmark 10-year US Treasury yields is helping the dollar outperform its rivals. At the moment, the US Dollar Index (DXY) is up 0.55% on the day at 90.55.

Meanwhile, the major Wall Street indices, which opened in positive territory on Friday, turned red in the last hour, providing an additional boost to the dollar.

The only US data revealed on Friday that the University of Michigan consumer sentiment index modestly improved to 86.4 in June’s flash estimate from 82.9 in May. This reading was better than the market expectation of 84, but failed to trigger a notable market reaction.

“USD / JPY’s small gain this week brings it to the higher side of its six-week range, just as trading for most of May probed the lower side of this 108.50-110.00 spread,” notes the analyst. FXStreet Senior Joseph Trevisani. “Neither the fundamental nor the technical analysis provides much direction. The fundamentals are tied to the backward political stance of the US Federal Reserve and the BOJ’s lack of credible rate tools.”

Technical levels

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