USD/JPY reverses early losses to trade near 105.50.
Dollar's recovery looks confounding in the wake of an uptick in Asian stocks.
The US 10-year yield remains under pressure near 0.66%.

The safe-haven American dollar is drawing bids despite the rally in Asian stocks and pushing USD/JPY higher.

At press time, the currency pair is trading near 105.50, representing a 0.10% gain on the day, having put in a session low of 105.10 during the early Asian trading hours.

While the exact reason for the turnaround in the US dollar is now known, the timing of the greenback’s recovery has coincided with the official announcement of Joe Biden as the Democratic nominee for the US Presidential elections, due in November.

Besides, the dollar's bounce looks surprising as Asian stocks have rallied to seven-month highs, tracking the S&P 500’s record close on Tuesday. The dollar has been treated as a haven currency since the beginning of the coronavirus crisis.

Also, speculation is rife that the Federal Reserve could soon signal greater tolerance for above-target inflation. The minutes from the July 28-29 Federal Reserve meeting are scheduled for release at 08:00 GMT on Wednesday. The US yields, too, are flashing red. As of writing, the 10-year yield is trading in the red near 0.66%, having recently hit a high of 0.73%. It remains to be seen if the greenback is able to keep and extend gains in Europe.

Technical levels

USD/JPY

Overview
Today last price	105.5
Today Daily Change	0.09
Today Daily Change %	0.09
Today daily open	105.41

Trends
Daily SMA20	105.96
Daily SMA50	106.7
Daily SMA100	107.18
Daily SMA200	108.09

Levels
Previous Daily High	106.07
Previous Daily Low	105.28
Previous Weekly High	107.05
Previous Weekly Low	105.71
Previous Monthly High	108.16
Previous Monthly Low	104.19
Daily Fibonacci 38.2%	105.58
Daily Fibonacci 61.8%	105.77
Daily Pivot Point S1	105.11
Daily Pivot Point S2	104.8
Daily Pivot Point S3	104.32
Daily Pivot Point R1	105.89
Daily Pivot Point R2	106.37
Daily Pivot Point R3	106.67

USD/JPY bounces 40 pips from session lows despite rally in Asian stocks