- USD/JPY likely tracked the S&P 500 futures higher in the last hour or so.
- The gains could be short-lived if the US yields remain under pressure.
USD/JPY picked up a bid around 105.82 earlier today and rose to a session high of 106.08, possibly tracking the uptick in the US equity index futures.
As of writing, the futures on the S&P 500 index are reporting 0.37% gains. Major Asian stocks, however, are trading mixed. Currently, Japan’s Nikkei is flat-lined while the shares in Australia are down 0.57%. Meanwhile, Hong Kong’s Hang Seng is up 1.37% and the Shanghai Composite is adding 0.37%.
The rise in the S&P 500 futures has likely weakened the demand for the anti-risk JPY. Currently, the pair is trading at 105.97, representing marginal gains on the day.
The pair may end up falling below the session low of 105.82 if the US 10-year treasury yield falls below Tuesday’s low of 1.428%. At press time, the yield is sidelined at 1.467%.
Also, reports are crossing the wires via the Wall Street Journal that China may exercise its power to declare an emergency in Hong Kong is the unrest continues. The news may put stocks under pressure, boosting demand for the Yen.
Technical levels
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