USD/JPY refreshes daily high above 110.00 ahead of US data

• USD/JPY tracks higher on Thursday in the initial Asian trading hours.
• US Dollar Index slips below 93.00 as risk sentiment improves.
• Higher US Treasury yields capped the downside for the US dollar.

 USD/JPY pair remains on the higher edge in the Asian session. Despite the weakness in the greenback, USD/JPY manages to trade modestly higher as the Japanese Yen struggles to find demand on the domestic COVID-19 situation and risk-positive market environment.

At the time of writing, USD/JPY is trading at 109.67, down 0.04 % for the day.

The US Dollar Index, which tracks the performance of the greenback against its six major rivals, trades near 93.00 with 0.02% losses as investors shrugged off the spread of the Delta coronavirus variant after the US Food and Drug Administration on Monday granted full approval to the COVID-19 vaccine Pfizer/BioNTech.

The US 10-year benchmark Treasury yields trade higher at 1.34% with more than 4% gains.

On the other hand, the Japanese Yen remained on a lower track after the news surfaced that Japan’s government plans to expand the coronavirus state of emergency to eight more states, Hokkaido, Miyagi. Gifu, Aichi, Mie, Shiga, Okayama and Hiroshima.

Meanwhile, Bank of Japan’s (BOJ) policymaker said the outbreak of COVID-19 infections outpacing the expected pace of economic recovery,

As for now, investors wait for the US Gross Domestic Price (GDP) Index, Corporate Profits, and Initial Jobless Claims to gauge the market sentiment.

USD/JPY additional levels