- 10-year US T-bond yield posts modest gains on Tuesday.
- US Dollar Index pushes higher for the third straight day.
- Coming up: Housing price index and existing home sales from US.
The USD/JPY pair gains traction during the Asian trading hours and broke above the 108 mark before going into a consolidation phase. As of writing, the pair was trading at 108.11, adding 0.25% on a daily basis.
The lack of significant macroeconomic data releases today allows the market sentiment to continue to drive the pair’s price action. The sharp increases witnessed in major European equity indexes and the 0.5% daily advance of the 10-year US Treasury bond yield point to a risk-on atmosphere that makes it difficult for the JPY to find demand. At the moment, Germany’s DAX and the Euro Stoxx 50 are up 1.7% and 1.25% on the day, respectively.
Market mood to continue to dominate the pair
In the second half of the day, existing home sales and housing price index data from the U.S. will be looked upon for fresh impetus. However, ahead of this week’s crucial durable goods orders and PMI figures, the market reaction is likely to be muted.
Meanwhile, if the upbeat performance of global stock markets provides a boost to Wall Street today, we could see the pair inch higher on the back of strong risk appetite in the second half of the day. At the moment, the S&P 500 Futures is up 0.28% on the day.
Technical levels to watch for
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