- USD/JPY edges higher toward 109.00 during European session.
- US Dollar Index touched its lowest level since early January on Tuesday.
- 10-year US T-bond yield is falling for the fourth straight day.
The USD/JPY pair registered small losses on Monday and started to inch higher on Tuesday. However, the lack of momentum in the movements suggests that the pair is in a technical consolidation phase. As of writing, USD/JPY was up 0.11% on a daily basis at 108.85.
USD remains on the back foot
On Monday, the broad-based USD weakness forced USD/JPY to push lower. Additionally, the benchmark 10-year US Treasury bond yield lost 1% and further weighed on the pair. Although the US Dollar Index extended its slide and touched its lowest level since January at 89.53, the risk-positive market environment seems to be making it difficult for the safe-haven JPY to find demand.
Meanwhile, the 10-year US T-bond yield is falling for the fourth straight day and was last seen losing nearly 1% on the day, not allowing USD/JPY to gather recovery momentum.
Later in the session, the Conference Board will release the Consumer Confidence report. Additionally, New Home Sales and Richmond Fed Manufacturing Index data will be featured in the US economic docket as well.
During the Asian session on Wednesday, Coincident Index and Leading Economic Index data from Japan will be looked upon for fresh impetus.
Technical levels to watch for
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