USD/JPY refreshes daily highs above 110.20 amid higher US Treasury yields
- USD/JPY maintains its steady pace and prepares to take out 110.50.
- US Treasury yields underpin the demand for the US dollar.
- The Japanese yen remains on the backfoot on downbeat economic data, GDP data eyed.
The strong buying pressure in the US dollar keeps USD/JPY higher in the overnight session. The pair extends the previous day’s gain on Wednesday in the initial Asian trading hours.
At the time of writing, USD/JPY is trading at 110.27, up 0.02 % for the day.
The rising US 10-year benchmark US Treasury yields aids the support to the greenback. Higher inflation expectations in the wake of a jump in average wages and concerns over the spread of the coronavirus delta variant make investors rush to the inflation-protected securities. The US Treasury yields trade at 1.37 with 0.41% gains.
The US Dollar Index (DXY), which measures the performance of the greenback against its six major rivals rose above 92.50 with 0.55% gains. This, in turn, built pressure on the safe-haven yen.
Meanwhile, a US House of Representatives committee set to debate on Democrats $3.5 trillion investment plan, also fuels the rally in the USD.
In addition to that, investors also waiting for the extension of the Fed Chairman Jerome Powell tenure by the White House, a decision to be likely this week.
As for now, investors are waiting for Japan’s Current Account, Gross Domestic Product (GDP), and US JOLTs Job Openings data to gauge the market sentiment.
USD/JPY additional levels