USD/JPY finds resistance near 109, eyes on Fedspeak

• The 10-year US Treasury bond yield extends rebound on Tuesday.
• US Dollar Index climbs to multi-week highs above 97.50.
• FOMC Chairman Powell, Atlanta Fed President Bostic and St. Louis President Bullard to speak later.

The USD/JPY pair posted modest gains on Monday and continued to push higher on Tuesday, reaching its highest level since late May at 108.96. However, the pair failed to preserve its momentum to stage a correction in the last couple of hours and was last seen trading at 108.82, adding 0.1% on the day.

Following Friday's strong upsurge, the 10-year US Treasury bond yield stayed relatively quiet on Monday but was able to gain traction today and was last up more than 1% on the day, allowing the positively-correlated pair cling to its daily gains.

Meanwhile, receding hopes of the Fed opting out for multiple rate cuts in the remainder of the year helps the greenback outperform its rivals with the US Dollar Index rising to a fresh 3-week high of 97.60 today. At the moment, the index is up 0.2% on the day at 97.56.

Later in the session, markets will be paying close attention to Atlanta Fed President Bostic and St. Louis Fed President Bullard's remarks. Although FOMC Chairman Powell is scheduled to speak as well, his prepared remarks are unlikely to touch on the policy outlook.

Technical levels to watch for