Home USD/JPY pares daily losses, turns flat near 103.60
FXStreet News

USD/JPY pares daily losses, turns flat near 103.60

  • USD/JPY staged a modest rebound and erased its daily losses.
  • US Dollar Index stays in the negative territory below 90.50.
  • 10-year US Treasury bond yield is up nearly 5% on Wednesday.

The USD/JPY pair spent the European trading hours in a tight range around mid-103s and edged lower in the early American session amid renewed USD weakness. However, rising US Treasury bond yields helped the pair stage a rebound in the last hour and USD/JPY turned flat on the day near 103.60.

Eyes on Brexit headlines

Reports suggesting that the UK and the EU were closing on a deal triggered a sharp upsurge in the GBP/USD pair and caused the USD to weaken against its major rivals. The US Dollar Index, which rose to a daily high of 90.58, turned south and slumped to a daily low of 90.15 on this development. However, a 5% increase seen in the benchmark 10-year US Treasury bond yield seems to be helping the DXY limit its losses. At the moment, the index is still down 0.39% on the day at 90.30.

Earlier in the day, the data from the US showed that Personal Spending and Personal Income in November fell by 0.4% and 1.1%, respectively. On a positive note, Durable Goods Orders rose more than expected and the weekly Initial Jobless Claims declined by 89,000 to 803,000.

In the meantime, Wall Street’s main indexes trade mixed, reflecting the pre-holiday market conditions. During the Asian session on Thursday, Bank of Japan Governor Haruhiko Kuroda will be delivering a speech but it would be a big surprise to see a market reaction.

Technical levels to watch for

 

FX Street

FX Street

FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions.