USD/JPY ?????? ??????? ????? ??????? ??????????????
Forex News

USD/JPY pares early losses, turns flat on the day near 107.80

  • Wall Street’s main indexes post strong gains Wednesday.
  • US Dollar Index finds support near 100, climbs to 100.30 area. 
  • 10-year US Treasury bond yield rises more than 6% on risk-on flows.

The USD/JPY pair fell to 107.50 earlier in the day and went into a consolidation phase as the upbeat market mood made it difficult for the JPY to find demand and limited the pair’s losses. With risk-on flows continuing to dominate the financial markets and the USD starting to gather strength in the American session, the pair erased its losses and was last seen trading at 107.81, up 0.05 on a daily basis. 

US Dollar Index finds support near 100

A decisive rebound seen in crude oil prices on Wednesday helped global equity indexes gain traction. Boosted by risk-on flows, Wall Street’s main indexes started the day sharply higher and were last seen rising around 2%. Additionally, the 10-year US Treasury bond yield is up 6.25% on the day.

Although the greenback stayed under pressure during the first half of the day and the US Dollar Index fell into the negative territory near the 100 handle, surging T-bond yields seem to be supporting the USD in the American session. At the moment, the index is up 0.1% on the day at 100.30.

During the Asian session on Thursday, the Jibun Bank will release its preliminary Manufacturing PMI data for April. The Japanese economic docket won’t be featuring any other significant macroeconomic data releases and the risk perception is likely to impact the pair’s movements in the near-term.

Technical levels to watch for

 

Source Link