USD/JPY rises above 110.50 on renewed USD strength
|- USD/JPY gained traction in the early American session.
- 10-year US Treasury bond yield is up more than 1% on Tuesday.
- USD outperforms its rivals after CPI inflation data.
After edging lower to 110.20 area during the European trading hours, the USD/JPY pair gained traction and reached a daily high of 110.55. As of writing, the pair was up 0.17% on the day at 110.52.
Price pressures continue to increase in US
Rising US Treasury bond yields and the broad-based USD strength seem to be boosting USD/JPY in the second half of the day.
The data published by the US Bureau of Labor Statistics revealed on Tuesday that the annual Consumer Price Index (CPI) in the US rose to 5.4% in June from 5% in May. With this print surpassing the market expectation of 4.9%, the US Dollar Index advanced to 92.70 area and the benchmark 10-year US Treasury bond yield was last seen gaining more than 1% on a daily basis at 1.388%.
Further details of the publication revealed that the Core CPI climbed to 4.5% on a yearly basis from 3.8%.
US Inflation Quick Analysis: Dollar selling opportunity? Fed could shrug off clunker-driven CPI.
Meanwhile, the S&P Futures are down 0.3% ahead of the opening bell, suggesting that the USD is likely to preserve its strength in the second half of the day.
There won't be any other macroeconomic data releases from the US in the remainder of the day. On Wednesday, Industrial Production and Capacity Utilization data will be featured in the Japanese economic docket.
Technical levels to watch for
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