USD/JPY makes progress toward 111.00 as US Treasury yields rise

• USD/JPY manages to gain some traction in the  Asian trading hours.
• US Dollar Index reclaims the 93.00 mark amid vaccine optimism.
• Higher US Treasury yields capped the downside for the US dollar.

 USD/JPY pair edges higher in the Asian session. The pair opened lower but made a swift recovery and traveled to touch the intraday high at 109.85

At the time of writing, USD/JPY is trading at 109.80, up 0.20 % for the day.

The US 10-year benchmark Treasury yields trade higher at 1.30% with 0.54% following Pfizer-BioNTech vaccine approval from the US Food and Drug regulatory.

The US Dollar Index, which tracks the performance of the greenback against its six major rivals, trades rebounds toward 93.00  as investors shrugged off the spread of the Delta coronavirus variant after the vaccine optimism, which could aid the economic recovery.

New home sales in the US rose 1% to 708K in July, in line with the market expectations of 700K.

On the other hand, the Japanese Yen remained on a lower track after the news surfaced that Japan’s government plans to expand the coronavirus state of emergency to eight more states, Hokkaido, Miyagi. Gifu, Aichi, Mie, Shiga, Okayama and Hiroshima.

As for now, investors wait for the Japanese Coincident Index Final, US Durable Goods Orders to gauge the market sentiment.

USD/JPY additional levels