The USD/JPY pair extended its daily advance in the early American session and reached its highest level since mid-July at 110.60. As of writing, the pair was up 0.28% on the day at 110.58. In the absence of high-tier macroeconomic data releases, rising US Treasury bond yields are helping USD/JPY preserve the bullish momentum. At the moment, the benchmark 10-year US T-bond yield is up 1% on the day and looks to close the fifth straight trading day in the positive territory.
On the other hand, the USD continues to outperform its rivals and provides an additional boost to USD/JPY. The US Dollar Index, which touched its strongest level in three weeks at 93.14 earlier in the day, is currently rising 0.12% at 93.08. The only data from the US revealed on Tuesday that Unit Labor Costs rose by 1% in the second quarter. Moreover, the Nonfarm Productivity was up 2.3% in the same period, worse than the market expectation of 3.5%. Later in the session, Chicago Fed President Charles Evans will be delivering a speech. In the meantime, the S&P 500 Index stays flat on the day, the Dow Jones Industrial Average is rising 0.35% and the Nasdaq Composite is losing 0.6%, failing to provide a clue regarding the market sentiment.