USD/JPY stays in the positive territory neary 111.20 supported by Wall Street rally

• Wall Street rises decisively  on Monday.
• US Dollar Index extends losses in the NA session.
• 10-year T-bond yield eases from daily highs.

The USD/JPY pair dropped to 111 area in the early NA session but moved back into the positive territory after finding support there. As of writing, the pair was adding 0.07% on a daily basis at 111.22.

The greenback that suffered losses against its major rivals on Friday following the disappointing nonfarm payrolls data, struggled to find demand on Monday. Although the upsurge witnessed in the 10-year T-bond yield, which rose more than 1% earlier in the day, supported the buck today, the US Dollar Index lost its traction in the second half of the day with investors staying focused on the British pound amid hopes of the UK and the EU reaching a renegotiated Brexit deal ahead of tomorrow’s vote. At the moment, the index is down 0.16% on the day at 97.20.  

The only data from the U.S. on Monday showed that retails sales in January rose 0.2% on a monthly basis in January following December’s 1.6% contraction but was largely ignored by market participants.  

Despite the USD weakness, however, the positive market sentiment confirmed by the strong rally in Wal Street is helping the pair stay in the positive territory by making it difficult for the safe-haven JPY to find demand. Led by the technology and the energy sectors the Nasdaq Composite and the S&P 500 were last seen adding 2% and 1.35%, respectively.

Key technical levels