The USD/JPY pair recovered from 6-day lows and climbed to 108.42 hitting a fresh daily low. The greenback also gained ground versus European currencies but remained steady against emerging market and commodity currencies. 

After reaching a fresh high, pulled back modestly and it is trading at 108.30, posting a daily gain of less than 20 pips. It is trimming some of yesterday’s losses. The intraday tone still points to the upside while in a broader perspective the pair continues to look vulnerable. 

The recent move higher took place during a presentation of Fed’s Chairman Powell in Washington. He said the underlying economic data does not point to slowdown but added his main concern is global growth. US yields rose further during Powell’s interview and boosted USD/JPY. The 10-year hit 2.72%. Wall Street indexes pulled back, into negative territory.