USD/JPY inches back above 106.00 as yields lurk higher

Technical Analysis

USD/JPY moves up to 106.05 to start European morning trade

This comes as Treasury yields are at the highs for the day, with 10-year yields up 4.5 bps to 1.421% and 30-year yields up 5.5 bps to 2.289%. This is putting some downward pressure on the yen and will be a key spot to watch – similar to yesterday.

The 106.00 handle has helped to limit gains in USD/JPY so far this month – at least in terms of the daily chart – so this remains a key level ahead of the weekend.

Meanwhile, the shove higher in yields is also starting to have some impact on equities sentiment with S&P 500 futures paring gains to flat levels and Nasdaq futures now seen down 0.1% as things get underway in Europe.

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