After retreating from a new YTD high, the USD/JPY is consolidating near 111.00.
The demand for the US currency is being harmed by lower US Treasury yields.
As risk sentiment rises following solid US data, the yen stays on the sidelines.
The USD/JPY pair extended its gains from the previous session and appeared to be on track for a new surge within a relatively narrow trading band. On Thursday, the pair began at the high level and settled within a narrow trade band with an upside bias.
The USD/JPY currency pair is currently trading at 111.04, up 0.01 percent on the day.
With 0.37 percent losses, the US Dollar Index (DXY), which gauges the greenback’s performance versus six major rivals, dipped below the 92.30 line. The drop in the value of the US dollar can be attributed to lower US 10-year benchmark bond yields.
After the jobs report indicated that the robust US economy rebound would continue, the market thought that the data would not be strong enough to trigger inflation and tightening concerns. US Treasury Yields traded at 1.43 percent, down 0.10 percent. In June, the US Non-Farm Payroll added 850K jobs, much exceeding market expectations of 700K.
The Japanese yen, on the other hand, maintained steady after the Bank of Japan (BOJ) stated that speeding up coronavirus vaccinations would boost the economy. However, due to the shaky economic recovery, inflation is anticipated to stay low.
For the time being, the factors surrounding the US dollar continue to impact the pair’s performance./n
