- USD / JPY gained ground and turned positive on the day near 106.50.
- The US dollar index extended its lead to a daily high of 93.36.
- Durable goods orders in the United States rose 11.2% in July.
After falling to the 106.00 area earlier today, the USD / JPY gained some ground early in the US session and hit a daily high of 106.47. At the time of writing, the pair was up 0.08% on the day at 106.43.
The greenback continues to outperform its main rivals
The general strength of the USD appears to be behind the recent surge in the USD / JPY. The US Dollar Index (DXY), which spent the first half of the day in a tight range near 93.00, capitalized on bullish US data and hit a new six-day high at 93.36 . Although the DXY retreated after the initial reaction, it is still up 0.26% on the day at 93.26.
Data released by the US Census Bureau on Wednesday revealed that durable goods orders in July jumped 11.2% and far exceeded market expectations for a 4.3% increase.
Meanwhile, the yield on 10-year US Treasury bonds is up more than 3.5% on a daily basis, helping the USD / JPY to stay in positive territory. On the flip side, the major Wall Street indices seem to open the day with little change despite the bullish data.
There will be no further macroeconomic data releases from the United States for the remainder of the day and the market valuation of the USD will likely remain the primary driver of USD / JPY action. On Thursday, investors will focus on FOMC Chairman Jerome Powell’s speech at the Jackson Hole Symposium.