USD/JPY advances toward 110.00 on modest USD strength
- USD/JPY started to edge higher ahead of the American session.
- US Dollar Index posts small daily gains above 93.00.
- 10-year US Treasury bond yield is trading at weekly highs above 1.3%.
The USD/JPY pair gained traction ahead of the American session and was last seen trading at a fresh daily high of 109.90, rising 0.25% on the day.
USD gathers strength ahead of high-tier data
The recent uptick witnessed in US Treasury bond yields seems to be helping USD/JPY edge higher. The benchmark 10-year US Treasury bond yield is currently trading at its strongest level in a week, rising 0.77% at 1.3070.
In the meantime, the US Dollar Index is posting modest daily gains above 93.00, allowing USD/JPY to stay in the positive territory. Later in the session, the US Census Bureau will release the Durable Goods Orders data for July.
According to FXStreet analyst Yohay Elam, Durable Goods Orders data will reveal if pessimism about the US economy had gone too far. "Economists' low expectations could also contribute to a positive surprise," Elam further added. "If the core figure beats estimates or even only matches them, it would serve as a sigh of relief for those worried about the economy and could support the dollar."
On the other hand, Japan has announced earlier in the day that it will expand the state of emergency to eight more prefectures, Hokkaido, Miyagi, Gifu, Aichi, Mie, Shiga, Okayama and Hiroshima. This development seems to be weighing modestly on the JPY as well.
Technical levels to watch for