USD/JPY surges in tandem with US bond yields, hits 2-week tops around mid-108.00s
- Upbeat US durable goods orders data helped the pair to build on the intraday uptick.
- A sudden pickup in the US bond yields prompts some aggressive short-covering move.
- Bulls seemed unaffected by a modest USD pullback and a sharp slide in global equities.
The greenback picked up the pace against its Japanese counterpart, with the USD/JPY pair surging around 30-pips to hit near two-week tops, around mid-108.00s in the last hour.
The pair once again managed to find decent some support near the 108.00 handle on Thursday and the intraday uptick got an additional boost following the release of stronger-than-expected US durable goods orders data, which reaffirmed expectations that the Fed is unlikely to deliver a 50 bps rate cut at its upcoming meeting on July 30-31.
This was evident from a strong pickup in the US Treasury bond yields and prompted some aggressive short-covering move. The momentum took along some short-term trading stops near 108.25-30 horizontal resistance and seemed unaffected by a sharp intraday US Dollar pullback - primarily led an intraday turnaround in the shared currency.
Meanwhile, a sudden drop in global equity markets, which tends to underpin the Japanese Yen's relative safe-haven demand, did little to hinder the intraday bullish move, albeit might turn out to be the only factor that might keep a lid on any runaway rally, at least for the time being.
Technical levels to watch