USD/JPY attempts to recover back to 110.00 as US Treasury yields rebound

• USD/JPY print mild gains on the first day of the fresh trading week.
• US Dollar Index remains near 93.50 amid rising US Treasury yields.
• The yen struggles amid the rising coronavirus Delta variant and downbeat economic data. 

USD/JPY remains muted with minor gains on Monday in the initial Asian trading hours.  A rebound in the US Treasury yields from the lower levels sponsored the performance of the pair.

At the time of writing, USD/JPY is trading at 109.83, down 0.02 % for the day.

The US Dollar Index, which tracks the performance of the greenback against its six major rivals, trades near 93.50 with 0.13% losses.

The US 10-year benchmark Treasury yields start the fresh trading week a bit higher at 1.25% with 0.40% gains. Fed’s latest minutes of a meeting revealed that the central bank gearing up to taper bond purchase this year.

Meanwhile, Dallas Federal Reserve President Robert Kaplan said he might need to adjust his view of taper in October month in the wake of the recent coronavirus Delta variant outbreak and its potential impact on the economy. The comments weighed on the greenback.

On the other hand, the Japanese Yen lost against the US dollar despite its safe-haven appeal as coronavirus cases remained a concern for the economy. 

In the latest development, Japan’s Minister in charge of the coronavirus response suggested tougher measures to curb infections under the current law. 

As for now, investors wait for the Japan Jibun Bank Manufacturing Purchase Managers Index (PMI) data to gauge the market sentiment.
 

USD/JPY  additional level