- US Retail Sales fell more than expected in February.
- US Dollar Index extends rally above 99.50 on Tuesday.
- 10-year US T-bond yields rebound, Wall Street opens in green.
The USD/JPY pair edged higher during the early American session on Tuesday and rose above the 107 handle. As of writing, the pair was up 1.1% on the day at 107.02.
Markets ignore US data
The data from the US showed that Retail Sales in February declined by 0.5% to fall short of the market estimate for an increase of 0.2%. However, Industrial Production in the same period rose 0.6% unexpectedly to help the greenback preserve its strength.
More importantly, heightened worries over a funding shortage amid strong demand in the face of a liquidity squeeze lift the USD higher against its rivals. As of writing, the US Dollar Index was up 1.55% on the day at 99.50.
In the meantime, Wall Street’s main indexes started the day in the positive territory to make it difficult for the JPY to attract investors. Moreover, the 10-year US Treasury bond yield is adding more than 8% to help the pair preserve its bullish momentum on Tuesday.
During the early trading hours of the Asian session on Wednesday, Trade Balance data from Japan will be looked upon for fresh impetus.
Technical levels to watch for
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