The market is sticking with calmer tones so far on the day

USD/JPY D1 23-07

USD/JPY is trading up to a session high of 110.49, its highest level in over a week, as Treasury yields are also nudging higher and putting behind the brief drop yesterday.

10-year yields are up 2.6 bps to 1.293% now and that is helping to keep a calmer mood in the market with equities also trading higher so far on the session.

European indices are holding gains around 0.6% to 0.8% while S&P 500 futures are up 0.5% as risk sentiment leans towards being more positive in European morning trade.

For USD/JPY, this has buyers setting their sights towards the 13-14 July highs @ 110.65-70 next with the 38.2 retracement level also mired in between that region.

Push above that and a retest of 111.00 will be on the cards, barring any headline surprises that could catch Treasury yields off guard again as seen yesterday.

That said, 10-year yields are facing technical resistance close to 1.30% so there is that to consider as that could limit any further momentum before the weekend.

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