If there is one word to describe price action in the dollar this week, sideways would be the best I reckon. The greenback is trading more mixed once again today, keeping an advance against the aussie and kiwi while sitting lower against the euro and franc. Meanwhile, the pound is a touch softer while the yen is mildly higher as USD/JPY continues to consolidate below 150.00:

Apart from a hiccup here, Tokyo intervention fears is still keeping the pair down despite a surge higher in Treasury yields this week. 10-year yields are closing in on the 5% mark but still, we are in the same spot as we were at the end of last week for USD/JPY.

EUR/USD on the other hand continues to hold in between 1.0500 and 1.0600 on the week, struggling to cement any dollar strength arising from higher yields. That might be the clearest indication that if and when yields retrace – which could happen upon touching 5% – then we might see a decent unwinding in dollar longs.

For now, all eyes remain on the bond market and we’ll see if there will be any further reaction to US data later today with the weekly jobless claims and Philly Fed manufacturing index coming up.

This article was written by Justin Low at www.forexlive.com.