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  • Treasury yields extend sell-off as risk-off intensifies, Yen lifted across the board.
  • US-China trade concerns weigh, 109.00 at risk ahead of US macro releases?

Having failed the upside attempts near 109.60 region on several occasions, the  bears finally tightened their grip in the European session and knocked-off the USD/JPY  pair to the lowest levels in eleven days near 109.20. At the press time, the spot is seen  making minor recovery attempts around 109.30 levels.

The selling pressure in spot intensified in tandem with that in the US Treasury yields across the curve, as a renewed risk-aversion wave gripped the European markets amid escalating US-China trade and global growth concerns while uncertainty over the US-Japan trade deal also added to the risk-off moods. The S&P 500 futures fell back into the red zone while the 10-year Treasury yields fell to the lowest levels since Oct 2017 at 2.274%, down nearly 2% on the day.

The latest bounce in the major can be seen amid a broadly firmer US dollar, as all eyes now remain on the key CB consumer confidence due for release later today at 1400 GMT.

The Consumer Confidence Index from the business group the Conference Board is predicted to rise to 130.0 in May from 129.2 in April. The Present Situation Index in April was 168.3 up from 163.0 in March. The Expectations Index rose to 103.0 in April from 93.3 the prior month, FXStreet’s Senior Analyst, Joseph Trevisani notes.

USD/JPY Technical Levels