- USD/JPY rose above 111.00 for the first time since March 2020.
- US Dollar Index consolidates weekly losses below 92.00.
- 10-year US Treasury bond yield is up nearly 1%.
Despite the broad-based USD weakness, the USD/JPY pair managed to end the day in the positive territory on Tuesday and extended its steady climb on Wednesday. As of writing, the pair was trading at its highest level in 15 months at 111.05, rising 0.37% on a daily basis.
Focus shifts to US PMI data
The risk-positive market environment made it difficult for JPY to attract investors on Tuesday. Meanwhile, the Bank of Japan's (BoJ) April meeting minutes showed on Wednesday that a few members saw the pickup inflation lacking strength, suggesting that the BoJ is unlikely to abandon its ultra-loose policy.
BoJ Minutes: Members shared view there was uncertainty over BoJ's projection.
On the other hand, the US Dollar Index is having a tough time staging a rebound after closing the first two trading days in the negative territory. Nevertheless, the 0.8% increase witnessed in the 10-year US Treasury bond yield is allowing USD/JPY to preserve its bullish momentum.
Later in the day, the IHS Markit's preliminary June Manufacturing and Services PMI data from the US will be looked upon for fresh impetus. During the Asian session, the data from Japan revealed that the Jibun Bank Manufacturing PMI declined to 51.5 in June from 53 in May but this reading had little to no impact on the JPY's market valuation.