USD/JPY rebounds to 109.25 on falling JGB yields, Jackson Hole eyed

Latest headlines crossed the wires, via Reuters, highlighting that Japan's 20-year government bonds (JGBs) yields slumped to the lowest level since early December 2016, down half a basis point to 0.353%.

The yields on the Japanese bonds fell, as the demand for the JGBs got a boost from firmer US treasuries, while solid demand at liquidity boosting auction also collaborate to the strength seen in the Japanese government bonds.

Falling Japanese yields exerted renewed selling pressure on the Japanese yen, sending the USD/JPY pair higher to test 109.25 levels. However, over the last hour, the spot is seen reversing its Asian bounce on weaker Nikkei 225 index, while increased cautiousness ahead of the Jackson Hole Symposium also offers some support to the Yen bulls.

USD/JPY is seen trading around 109.15 levels, still up +0.11% on the day.