- USD/JPY accumulates gains on Tuesday in the initial Asian session.
- The US dollar holds above 93.80 despite slightly weaker US T-bond yields.
- Yellen's comments on inflation, higher equity market, and Fed tapering influences traders' decisions .
USD/JPY makes steady moves following the previous session’s movement. The pair retreated from the highs of 2018 high near 114.69 on Wednesday, and continued to move in a familiar trading range. At the time of writing USD/JPY is trading at 113.72, up 0.02% so far.
The US benchmark 10-year T bond yields trades lower at 1.63% which undemins the demand for the greenback. The yields took a tour to the south following US Treasury Secretary Janet Yellen remarks on inflation where she expected US inflation to return to normal by the second half of 2022.
In addition to that, US House Speaker Nancy Pelosi remained hopeful to pass an infrastructure bill and have a deal on the social policy bill by the end of the week. US Senator Joe Manchin also said that a deal on the outlines of the plan is within reach this week.
On the other hand the Japanese yen lost its ground on improved risk appetite among investors. It is worth noting that, S&P 500 Futures are trading at 4,563,up 0.11% so far.
As for now traders are waiting for the US Housing Price Index, S&P/Case-Shiller Home Price indices, and US Consumer Confidence to gauge the market sentiment.
USD/JPY additional levels
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