USD/JPY climbs to fresh weekly highs near 108.50 supported by rising T-bond yields
- USD/JPY continues to push higher after closing in the positive territory on Monday.
- 10-year US Treasury bond yield is rising for the third straight trading day.
- Wall Street's main indexes post modest losses on Tuesday.
Following last week's drop, the USD/JPY pair managed to stage a rebound on Monday and closed in the positive territory. The pair preserved its bullish momentum on Tuesday and touched its highest level in a week at 108.48. As of writing, the pair was up 0.35% on a daily basis at 108.46.
USD/JPY capitalizes on rising US T-bond yields
The ongoing recovery in the US Treasury bond yields helps USD/JPY edge higher. The benchmark 10-year US T-bond yield, which gained nearly 2% in the previous two trading days, is currently up 1.15% at 1.586%.
Meanwhile, Wall Street's main indexes push lower after the opening bell, helping the greenback stay resilient against its rivals. At the moment, the US Dollar Index is rising 0.1% at 90.92.
Earlier in the day, the Bank of Japan (BoJ) left its policy settings unchanged as expected. While commenting on the policy outlook, BoJ Governor Haruhiko Kuroda reiterated that they will ease monetary policy further without hesitation as needed.
On the other hand, the Conference Board's Consumer Confidence Index improved to 121.7 in April. Although this reading beat the market expectation of 113, it failed to trigger a meaningful market reaction. Later in the session, the 7-year US Treasury note auction will be watched closely by market participants. On Wednesday, Retail Trade data will be featured in the Japanese economic docket.
Technical levels to watch for