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  • USD/JPY rose to a daily high of 109.90 on Wednesday.
  • 10-year US Treasury bond yield is down nearly 1% on the day.
  • US Dollar Index retreats to 90.00 ahead of Fed’s Beige Book.

After closing flat on Tuesday, the USD/JPY pair turned north and reached a daily high of 109.90 during the European trading hours but lost its momentum. As of writing, the pair was still up 0.18% on the day at 109.65.

Falling US T-bond yields weigh on USD/JPY

Earlier in the day, the renewed USD strength helped USD/JPY push higher. The US Dollar Index, which tracks the greenback’s performance against a basket of six major currencies, advanced to 90.25 before turning flat on the day at 90.00 in the early American session.

In the absence of high-tier macroeconomic data releases, US Treasury bond yields seem to be impacting the USD’s market valuation. The benchmark 10-year US T-bond yield, which gained 2% on Tuesday, is currently losing nearly 1% around 1.6%.

Meanwhile, Wall Street’s main indexes trade near Tuesday’s closing levels after the opening bell, suggesting that investors remain reluctant to take large positions ahead of this week’s highly-anticipated May jobs report.

Later in the session, the Federal Reserve will release its Beige Book. Investors will look for fresh clues regarding price pressures in the 12 Fed distrcits.

Technical levels to watch for