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  • USD/JPY remains depressed below 109 on Friday.
  • US Treasury yields retreat weigh on the demand of the US dollar.
  • Downbeat Japanese inflation data keep yen on lower ground.

The intense selling pressure surrounding the US dollar keeps USD/JPY pressurized below the 109 mark in the Asian session. The pair makes a range-bound trade and accumulates 10-pips movements.

At the time of writing, the USD/JPY pair is trading at 108.86, up 0.10% on the day.

US Treasury yields rose mildly on Friday, with the benchmark 10-year reaching 1.63% as investors appear to shrug off inflationary fear and expectations of sooner tightening of monetary policy. Fed officials restated that the economy is far from full recovery and downplayed inflation pressures to only be transitory.

The US Dollar Index (DXY), which tracks the movement of the greenback against six majors, follows the benchmark 10-year yields and booked some heavy losses on Thursday,  erasing the previous day’s gain to reach 89.72, with 0.49% loss.

On the other hand, despite concerns of coronavirus infections and the warning of Bank of Japan  Governor Haruhiko Kuroda, the yen gained on its safe-haven appeal amid the rout of selling in the US dollar. The Japanese Consumer Price dropped by 0.4% YoY in April. Price fell to 0.4% MoM, as the pandemic weighs on household spending.

As for now, traders turn their attention to the release of US PMI data Existing Home Sales data to gauge the market sentiment.
 

USD/JPY Additional Levels

 

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