USD/JPY - 108.41.. Despite extending decline from Wednesday's 1-month high of 108.99 to 107.86 in Asian morning yesterday, the greenback caught a bid in New York session n rallied to as high as 108.52 due to broad-based usd's rebound after release of stronger-than-expected U.S. inflation data together with rising treasury yields (benchmark 10-year rose from 2.037% to as high as 2.15%).
The pair extended Thursday's gain to 108.60 ahead of Tokyo open before easing after meeting selling interest from Japanese names (exporters). Although Thursday's upbeat U.S. CPI has dampened market expectations of aggressive rate cuts by the Fed, bearish bias on USD remains as Fed J. Powell repeated his dovish comments in his 2nd testimony on Capital Hill yesterday, suggesting a strong likelihood of a 25 b.p. rate reduction at July's FOMC meeting, therefore, 108.99 top should hold from here. For now, offers are tipped at 108.60/70 and more above with stops reported above 109.00.
Bids are noted at 108.30-20 with stops below 108.00.
T.G.I.F., on the data front, U.S. will later release PPI final, core PI final n export price. We also have Chicago Fed President Evans speaking at a financial forum in Chicago ar 14:00GMT.
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