USD/JPY consolidates near multi-month highs around 114.30

• USD/JPY accumulates minor losses on Tuesday in the initial Asia session.
• US dollar remains steady near 94.00 on firmer US T-bonds yields.
• US debt limit, inflationary pressure, higher Wall Street Index contains the movement in the greenback.

USD/JPY extends the previous session’s declines on Tuesday in the early Asian trading session. The pair stays in a relatively narrow price band, after hovering near the daily highs in the  US session. At the time of writing, USD/JPY is trading at 114.27, down 0.02% for the day.

The US benchmark 10-year Treasury bond yields trade at 1.59% after rising trading near 1.61% on Monday, levels are last seen in early June. As the recent, Retail Sales and Initial Jobless Claims suggest ongoing economic recovery despite persistent pricing pressure. The greenback remains steady around 94.00.

The US Treasury Secretary Janet Yellen said that Congress needs to act to protect US credit. In addition to that, US President Joe Biden will speak to US Senator Joe Manchin, the centrist Democrat from coal-rich West Virginia whose vote is critical to the passage of the budget reconciliation bill pending in Congress. 

On the other hand, the Japanese yen gained on its safe-haven appeal amid higher pricing pressure due to soaring energy prices. It is worth noting that, S&P 500 Future is trading at 4,473.50, down 0.09% for the day.

As for now, traders are waiting for the US Housing Starts, and Building Permits data to gauge the market sentiment.

USD/JPY additional levels