USD/JPY pares early losses on renewed USD strength, rises to 110.30 area
|- USD/JPY regained its traction in the early American session.
- US Dollar Index stretched higher to fresh multi-month tops above 92.00.
- Fed's Bullard said inflation is more intense than expected.
After dropping below 110.00 earlier in the day, the USD/JPY pair regained its traction and was last seen rising 0.1% on a daily basis at 110.31.
DXY advances to highest level since April 13
Despite the unabated USD strength, falling US Treasury bond yields forced USD/JPY to turn south on Thursday following Wednesday's sharp upsurge. Nevertheless, with the benchmark 10-year US T-bond yield staying flat on the day, the USD valuation became the primary driver of USD/JPY movements ahead of the weekend. Despite Thursday's correction, USD/JPY looks to post weekly gains for the second straight week.
While speaking to CNBC on Friday, St. Louis Fed President James Bullard noted that FOMC Chairman Jerome Powell officially opened taper discussion at this week's meeting and acknowledged that the June meeting presented a "hawkish tilt."
Following these comments, the US Dollar Index (DXY) rose to its highest level in more than two months at 92.21. As of writing, the DXY was up 0.3% on the day at 92.17.
Meanwhile, Wall Street's main indexes remain on track to open deep in the negative territory, suggesting that the risk-averse market environment is likely to help the USD to continue to outperform its rivals in the American session.
Technical levels to watch for
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