USD/JPY consolidates gains below 110.50 amid USD strength

  • USD/JPY extends the gains on the last trading day of the week.
  • US Dollar Index remains strong above 93.00 on upbeat economic data.
  • The yen slip on the backfoot on its slower vaccination program.

The appreciative move in the US dollar keeps, USD/JPY higher on Friday in the initial Asian trading hours. The pair continues to consolidate gains in a familiar trading range of 110.20 and 110.50.

At the time of writing, USD/JPY is trading at 110.43, up 0.03 % for the day.

The US Dollar Index, which tracks the performance of the greenback against its six major rivals, trades above 93.00 with 0.10% gains.

The US jobless data enhances the attractiveness of the greenback as it reflects the better labor market conditions but falls short to support the early tapering by the Fed. The US Initial Jobless Claims fell for a third straight week to 375k.
In the meantime, the Producer Price Inflation (PPI) rose by 1% in July, beating the market expectations.

On the other hand, the Japanese yen as investors assessed the impact of the slower vaccination program on the pace of economic recovery.

As for now, investors wait for the US Trade and Michigan Consumer Sentiment Index data to gauge the market sentiment.

USD/JPY additional levels

 

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