USD/JPY extends gains to 110.25, highest level in six days on higher US yields
- Yen drops as US yields soar after long weekend in the US.
- USD/JPY could post highest daily close in almost a month.
The USD/JPY broke above 110.00 and climbed to 110.25, reaching the highest level since last Wednesday. It is hovering around 110.15/20, with a positive tone supported by a stronger dollar across the board. From the daily low, the pair rose more than pips, moving from the lower bound of the current range to test the top.
Stocks down, yields up
After the long holiday weekend, US stocks are lower. The Dow Jones falls by 0.72% and the Nasdaq 0.01%. Treasuries are declining, with the 10-year yield at 1.38%, the highest since mid-July. Higher yields are the key driver in USD/JPY on Tuesday.
The greenback is also up versus its G10 rivals. The DXY rising for the second day in a row, recovering from monthly low, and is up 0.28%, slightly below 92.50.
Still sideways around 110.00
Since mid-August, USD/JPY is hovering around 110.00, unable to move away from that area. A daily close around current level would be a positive development, pointing to a potential breakout of the range. On the flip side, the lower limit of the range could be seen around 109.60. A close under that area should clear the way to more losses, targeting the 109.00 area.
via FXStreet News https://ift.tt/3tYkUTd
September 7, 2021 at 08:52AM