Ella 
The yen appreciated on improving risk sentiment.
Japan’s 10-year bond yield fell below 1% for the first time in two weeks.
The depreciation of US Treasury yields weakened the dollar.
The yen (JPY) appreciated on improving risk sentiment and rising speculation of a rate cut by the US Federal Reserve (Fed) in September. The depreciation of US Treasury yields put pressure on the US dollar (USD), weakening the USD/JPY currency pair. Investors are awaiting the release of important US employment data on Friday, including average hourly earnings and non-farm payrolls.
Japanese bond yields retreated from recent highs, with the benchmark 10-year bond yield falling below 1% for the first time in two weeks. However, real wages in Japan fell for the 25th consecutive month in April as domestic inflation continued to outpace wage growth. The data will make policy normalization by the Bank of Japan (BoJ) more challenging.
The US dollar index (DXY), which measures the value of the US dollar (USD) against six other major currencies, faced challenges after the release of mixed economic data from the United States. This fueled speculation of a rate cut by the US Federal Reserve (Fed). The probability that the Federal Reserve will cut interest rates by at least 25 basis points in September surged to nearly 70.0% from 47.5% a week ago, according to the CME FedWatch tool.
