• USD/JPY remains on track to post small daily gains.
  • US Dollar Index holds above 90.15 after Powell’s testimony.
  • Wall Street’s main indexes trade deep in the negative territory.

The USD/JPY pair fell below 105.00 for the first time in a week on Tuesday but reversed its direction during the early trading hours of the American session. After touching a fresh daily high of 105.43, however, the pair lost its traction and was last seen trading at 105.22, where it was up 0.15% on a daily basis.

DXY looks to post modest daily gains

Earlier in the day, the rebound witnessed in the US Dollar Index (DXY) helped USD/JPY push higher. The DXY jumped to a daily top of 90.26 after Wall Street’s main indexes started the day sharply lower but struggled to stretch higher. 

During his semi-annual testimony before the Senate Banking Committee on Tuesday, FOMC Chairman Jerome Powell reiterated that they will keep the monetary policy accommodative. “We have a significant ground to cover before getting even close to full employment,” Powell added and the greenback failed to preserve its bullish momentum. At the moment, the DXY is up 0.15% on the day at 90.15.

Meanwhile, the data published by the Conference Board showed that the Consumer Confidence Index for February edged higher to 91.3, compared to analysts estimate of 90, but was largely ignored by market participants.

There won’t be any macroeconomic data releases from Japan on Wednesday and USD/JPY could have a tough time making a decisive move in either direction during the Asian session.

Technical levels to watch for