USD/JPY loses bullish momentum before testing 110.00
- USD/JPY continues to fluctuate below 110.00 on Tuesday.
- 10-year US Treasury bond yield is rising more than 1%.
- US Dollar Index stays relatively calm near 93.00 ahead of mid-tier data.
Despite the broad-based selling pressure surrounding the greenback, the USD/JPY pair posted small losses on Monday as the JPY struggled to find demand in the risk-positive market environment. Although the pair edged higher toward 110.00 in the early trading hours of the European session, it lost its momentum and was last seen trading flat at 109.70.
DXY steadies around 93.00
The benchmark 10-year US Treasury bond yield is rising more than 1% on Tuesday, helping USD/JPY limit its losses. Meanwhile, Wall Street's main indexes look to open modestly higher following Monday's rally with the S&P Futures rising 0.17% on the day.
On the other hand, the US Dollar Index (DXY) is having a tough time staging a convincing rebound after closing deep in the negative territory on Monday.
Ahead of the July New Home Sales and the Federal Reserve Bank of Richmond's Manufacturing Index data for August, the DXY is virtually unchanged on a daily basis at 93.00.
On Wednesday, Coincident Index and the Leading Economic Index data will be featured in the Japanese economic docket. Nevertheless, these data are likely to be ignored by market participants and the risk perception is expected to continue to dominate the market action.
Technical levels to watch for