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  • 10-year US Treasury bond yield is up more than 4% on Tuesday.
  • US Dollar Index stays within touching distance of 98 handle. 
  • Wall Street’s main indexes  open

The sharp upsurge witnessed in the US Treasury bond yields on Tuesday helps the positively-correlated USD/JPY pair gain traction. As of writing, the pair was trading at 109.15, adding 0.45% on a daily basis.

JPY struggles to find demand as a safe-haven

With China committing to help the economic recovery remain intact despite the coronavirus outbreak’s negative impact, investors took a sigh of relief and risk-on flows started to dominate the markets. Major European equity indexes are all adding more than 1% on the day and the 10-year US T-bond yield is up more than 4% on the day to confirm the upbeat mood.

Furthermore, White House economic adviser Larry Kudlow told Fox Business Network that the coronavirus was expected to a “minimal impact” on supply chains to provide an additional boost to the market sentiment and argued that this crisis could spur a “step-up” in the US production.

Wall Street’s main indexes opened the day sharply higher as well and the Dow Jones Industrial Average and the Nasdaq Composite were both up 1.3% on the day.

Meanwhile, the greenback is also capitalizing on the impressive performance of T-bond yields and helping the pair stay in the positive territory. At the moment, the US Dollar Index is up 0.12% on the day at 97.92.

Technical levels to watch for