USD/JPY retreats to 110.20 area, eyes on Wall Street and US T-bond yields
- USD/JPY climbed to a fresh weekly high on Wednesday.
- 10-year US Treasury bond yield is down more than 2%.
- Wall Street's main indexes look to open flat.
The USD/JPY pair registered strong gains on Tuesday and extended its rally to a fresh weekly high of 110.45 on Wednesday. Nevertheless, the pair struggled to preserve its bullish momentum and erased its daily gains. As of writing, USD/JPY was virtually unchanged on the day at 110.23.
10-year US T-bond yield turns south on Wednesday
The sharp upsurge witnessed in the US Treasury bond yields provided a boost to USD/JPY during the first half of the week. After rising nearly 3% on Tuesday, however, the benchmark 10-year US T-bond yield is down 2% in the early American session, forcing the pair to edge lower.
In the meantime, Wall Street's main indexes remain on track to start the day near Tuesday's closing levels with stock index futures trading flat ahead of the opening bell.
Later in the session, the IBD/TIPP Economic Optimism and JOLTS Job Openings data from the US will be looked upon for fresh impetus. More importantly, the 10-year US Treasury note auction, which is scheduled to take place at 1700 GMT, will be watched closely by market participants.
Earlier in the day, the data from Japan revealed that the GDP expanded at an annual rate of 1.9% in the second quarter. Although this reading came in better than the market expectation of 1.6%, it was largely ignored by market participants.
Technical levels to watch for