FxWirePro: USD/JPY retraces above 110, US dollar catches fresh bids ahead of PCE data, Powell’s Jackson Hole speech

USD/JPY chart - Trading View 

USD/JPY is staging a bounce from session lows at 109.88 and has edged above 110 handle in the run up to the key Jackson Hole Symposium event.

The greenback remains underpinned amid renewed uptick in the US Treasury yields across the curve as the risk sentiment improves.

USD/JPY was trading 0.07% higher at 110.16 at around 11:10 GMT, extending gains for the 3rd straight session.

Markets shrug off the geopolitical political tensions over Kabul airport blasts and focus now remains on Powell’s speech at the annual Jackson Hole event.

Several Fed officials sounded hawkish notes on Thursday, with St. Louis Fed president James Bullard saying he expects a "good assessment" of where the economy stands in Fed Chair Jerome Powell's keynote speech at the event.

Powell is expected to offer fresh signals on the US central bank’s taper timeline. And a hawkish Fed view is largely priced in.

If Fed Chair turns dovish and refrains from any taper talk, the US dollar is likely to witness a massive sell-off, pushing the USD/JPY pair lower.

Investors also await slew of economic data: US Personal Income and Spending data, Goods Trade Balance, Personal Consumption Expenditure (PCE) Index for impetus.

USD/JPY trades in a 'Symmetric Triangle' pattern and is attempting cloud breakout. Momentum is bullish, scope for test of triangle top at 110.45.