The USD/JPY pair is accumulating mild gains in the early European session. The pair quickly recovered from the intraday lows of 109.19 and refreshed the session high near 109.40, thus marking a narrow trading range for the pair in the absence of immediate catalysts. At the time of writing, the USD/JPY pair is trading at 109.40, up 0.06% on the day.
The subdued performance of the US dollar index (DXY) is attributed to the pair’s non-performance. The index remains dressed near daily highs of 109.40 following the lack of traction in US Treasury yields with minimal gains of 0.01%. The comments from US Treasury Secretary Jenet Yellen on rising interest rates and inflation proved to be ineffective as the market digested them.