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  • 10-year United States (US) Treasury bond yield gains more than 1%.
  • US Dollar Index consolidates gains above the 99 handle.
  • Coming up: Personal Consumption Expenditure (PCE) Price Index from the US.

The USD/JPY pair gained traction in the last hour and advanced to its highest level in a week at 108.14. As of writing, the pair was trading at 108.12, adding 0.28% on a daily basis.

Risk perception impacts the demand for the JPY

The upbeat market sentiment amid the easing concerns over a protracted trade conflict between the United States and China seems to be making it difficult for the safe-haven JPY to find demand. Earlier in the day,  China’s Foreign Minister Wang acknowledged that the US had shown goodwill be waiving tariffs on Chinese products and added that they wanted to reduce the pessimistic language and actions in the dispute. The next round of high-level trade negotiations is set to take place in October in Washingon.

Boosted by the risk-on flows, the 10-year US Treasury bond yield started to erase Thursday’s losses and was last seen rising 1.7% on the day at 1.724%.

Meanwhile, ahead of the Personal Consumption Expenditures (PCE) Price Index, the Federal Reserve’s preferred gauge of inflation, Personal Income and Personal Spending data releases from the US, the US Dollar Index is preserving yesterday’s gains around 99.20, allowing the bullish pressure to remain intact.

Technical levels to watch for