USD/JPY: Poised to extend its advance on a break above 110.10

USD/JPY is up, trading near a daily high of 109.88, as US inflation concerns recede. The pair could extend its advance but needs to accelerate above 110.10, Valeria Bednarik, Chief Analyst at FXStreet, briefs.

See – USD/JPY: Upside is limited, yen to depreciate more against non-dollar currencies – MUFG

The greenback is up as government bond yields eased from weekly tops

“US government yields ease, somehow indicating investors prefer to focus on US economic growth instead of on inflationary pressures. However, the picture may well be temporal, as Federal Reserve officials have hinted they are willing to discuss tapering for the first in over a year.”

“The USD/JPY pair could have better chances of rallying once above 110.10, the immediate resistance level.”