USD/JPY jumps to fresh weekly highs above 104.70 fueled by risk flows
- USD/JPY is rising sharply in the early American session.
- Wall Street remains on track to open decisively higher.
- US Dollar Index turns positive on the day near 92.50.
The USD/JPY pair gained traction in the last hour and climbed to its highest level in a week at 104.75. As of writing, the pair was up 0.16% on the day at 104.72.
DXY recovers to 92.50 ahead of Wall Street's opening bell
The upbeat market mood seems to be making it difficult for the JPY to find demand for the second straight day on Tuesday. Reflecting the risk-positive environment, major European equity indexes are up more than 2% and the S&P 500 Futures gain 0.75% ahead of the opening bell.
Meanwhile, the 10-year US Treasury bond yield turned positive on the day on risk flows and helped the USD pare the losses it suffered against its major rivals earlier in the day. At the moment, the US Dollar Index (DXY) is registering small daily gains at 92.50.
The data from the US showed on Tuesday that the Housing Price Index rose by 1.7% in September and came in higher than the market expectation of 1.1%. Later in the session, the Conference Board's Consumer Confidence Index and the Richmond Fed Manufacturing Index will be looked upon for fresh impetus.
Additionally, New York Federal Reserve President John Williams and Federal Reserve's Vice Chairman Richard Clarida will be delivering speeches at 1700 GMT and 1745 GMT, respectively.
Technical levels to watch for