USD/JPY advances beyond 104.00 on renewed USD strength
|- USD/JPY is rising for the second straight day on Thursday.
- 10-year US Treasury bond yield is up nearly 2%.
- US Dollar Index climbs above 90.50 ahead of Powell's speech.
After spending the majority of the European session in a tight range near 104.00, the USD/JPY pair gained traction and was last seen gaining 0.27% on the day at 104.15.
DXY edges higher ahead of American session
A renewed USD strength seems to be providing a boost to USD/JPY ahead of key events. A sharp decline witnessed in the EUR/USD pair amid the dovish tone seen in the European Central Bank's (ECB) December Meeting Accounts is allowing the greenback to find demand.
The ECB's monthly publication revealed that policymakers were concerned about the developments surrounding the euro exchange rate and the potential negative impact on the inflation outlook. At the moment, the US Dollar Index (DXY) is up 0.18% on the day at 90.52.
Meanwhile, the 10-year US Treasury bond yield is rising nearly 2% at 1.107% and helping USD/JPY preserve its bullish momentum as investors price in additional government spending, which President-elect Joe Biden is expected to unveil later in the day.
The only data featured in the US economic docket will be the US Department of Labor's weekly Initial Jobless Claims report on Thursday. More importantly, FOMC Chairman Jerome Powell will be speaking on the policy outlook at an online event at 1730 GMT.
Technical levels to watch for
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