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  • USD/JPY is posting strong daily gains on Friday.
  • Rising US Treasury bond yields provide a boost to USD/JPY.
  • US Dollar Index stays in the positive territory above 92.20.

The USD/JPY pair preserved its bullish moment in the early American session and touched a fresh daily high of 109.96 before going into a consolidation phase. As of writing, the pair was up 0.45% on a daily basis at 109.73.

US T-bond yields rebound on Friday

The moderate USD strength and rising US Treasury bond yields help USD/JPY push higher ahead of the weekend. The 10-year US Treasury bond yield, which lost 3.7% on Thursday, is currently gaining 3% at 1.66% and the US Dollar Index (DXY) stays in the green at 92.25.

Earlier in the day, the data published by the US Bureau of Labor Statistics showed that the Core Producer Price Index (PPI) rose to 3.1% in March from 2.5% in February to come in higher than analysts’ estimate of 2.7%. Nevertheless, the market reaction to the PPI report was largely muted.

In the meantime, Wall Street’s main indexes opened near Thursday’s closing levels and seem to be struggling to make a decisive move in either direction, allowing the US T-bond yields to continue to impact USD/JPY’s movements.

There won’t be any other data releases featured in the US economic docket and USD/JPY is likely to continue to fluctuate below the key 110.00 handle.

Technical levels to watch for