USD/JPY reverses with USD T-yields, near 109.00
The USD/JPY is seen reversing a part of the intraday rally, when the US dollar attempts a minor correction versus its major peers after the upsurge to the highest levels in three-months reached at 91.11.
The greenback’s rally was mainly fuelled by the 10-year Treasury yields’ climb above the key 3 percent levels, as markets turn optimistic on the US economic prospects, which could lead to a faster pace of Fed tightening in the coming months.
The latest leg down in the spot can be attributed to the sell-off in the global equities, which spooks the markets and underpins the demand for the Yen as a safe-haven. The US companies warned of higher borrowing costs amid rising Treasury yields, pointing towards the end of the corporate earnings boom.
In the session ahead, the pair will continue to track the USD price-action amid a lack of the US economic news, as attention turns towards Friday’s Bank of Japan monetary policy decision for fresh impetus on the Yen.