- USD/JPY is falling for the second straight day on Tuesday.
- USD selloff picks up steam amid falling US T-bond yields.
- Wall Street’s main indexes look to open modestly lower.
The USD/JPY pair posted small daily losses on Monday and closed above 105.00 before coming under heavy bearish pressure on Tuesday. As of writing, the pair was trading at its lowest level since January 29 at 104.63, losing 0.56% on a daily basis.
USD weakens amid slumping US T-bond yields
The sharp decline witnessed in the US Treasury bond yields seems to be weighing on USD/JPY on Tuesday. The benchmark 10-year US T-bond yield is currently losing more than 2% at 1.147%. Consequently, the greenback is also struggling to find demand and the US Dollar Index, which closed in the red for the second straight day on Monday, is down 0.38% at 90.58. The NFIB Business Optimism Index and JOLTS Job Openings will be featured in the US economic docket.
Earlier in the day, Japan’s cabinet has announced that they have decided to spend 1.1372 trillion JPY in emergency reserves to help the economy rebound from the coronavirus crisis but this development was largely ignored by the market participant.
In the meantime, the S&P 500 Futures are down 0.1% on the day, suggesting that Wall Street’s main indexes could reverse direction after notching new record highs on Monday. In case US stocks edge lower after the opening bell, USD/JPY could struggle to stage a rebound with the JPY preserving its strength as a safe-haven.
Technical levels to watch for
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