USD/JPY stays in the positive territory above 109.00, eyes on US T-bond yields
- USD/JPY is moving sideways above 109.00 on Monday.
- US Dollar Index edges higher toward 92.00 in early American session.
- 10-year US T-bond yield stays within a touching distance of yearly highs.
The USD/JPY closed in the positive territory for the fourth straight time last week but seems to be struggling to gather bullish momentum on Monday. As of writing, the pair was up 0.15% on the day at 109.20.
DXY closes in on 92.00
Earlier in the day, the benchmark 10-year US Treasury bond yield climbed to its highest level in more than a year at 1.646% and helped USD/JPY edge higher. Nevertheless, the technical correction witnessed in the 10-year bond yield during the European trading hours limited the pair's upside.
On the other hand, the greenback stays relatively strong against its major rivals with the US Dollar Index (DXY) rising 0.2% at 91.87 and allowing USD/JPY to continue to float above 109.00.
The data from the US showed on Monday that the NY Empire State Manufacturing Index improved to 17.4 in March and beat the market expectation of 14.5.
Investors will keep a close eye on US T-bond yields in the remainder of the day. Meanwhile, Wall Street's main indexes look to open little changed as the S&P 500 Futures are up only 0.08% on the day.
On Tuesday, Industrial Production data will be featured in the Japanese economic docket. Moreover, Bank of Japan Governor Haruhiko Kuroda will deliver a speech at 0405 GMT.
Technical levels to watch for