- USD/JPY pair lost its traction in early American session.
- US Dollar Index stays in the positive territory.
- 10-year US T-bond yield is posting modest losses after rising earlier.
The USD/JPY pair rose to a daily high of 109.33 during the European trading hours but lost its traction ahead of Wall Street’s opening bell. As of writing, the pair was down 0.05% on the day at 108.83.
Earlier in the day, the broad-based USD strength and rising US Treasury bond yields provided a boost to USD/JPY. Although the US Dollar Index stays in the positive territory near 89.90 in the early American session with the USD outperforming its risk-sensitive rivals, the 10-year US T-bond yield is down 0.4%, making it tough for USD/JPY to stay bullish.
Meanwhile, Wall Street’s main indexes look open sharply lower with S&P Futures and Nasdaq Futures losing 1.3% and 1.75%, respectively.
There won’t be any high-tier data releases featured in the US economic docket on Wednesday and USD/JPY is likely to continue to react to fluctuations in US T-bond yields.
Later in the session, the FOMC will release the minutes of its April policy meeting. On the other hand, the data from Japan showed that Industrial Production in March expanded by 1.7%, compared to analysts’ estimate of 2.2%, but this reading was largely ignored by market participants.
