USD/JPY climbs to yearly high during Powell’s testimony

The USD/JPY pair is climbing to a YTD peak of 142.88 as Fed Chair Jerome Powell’s hawkish commentary strengthens the US Dollar. Global economic slowdown fears resurface as major central banks, including the Bank of England, tighten monetary conditions.

The USD/JPY benefits from rising bond yields and dovish commentary from Bank of Japan board member Asahi Noguchi. The pair also climbs to new year-to-date (YTD) highs at around 142.88 on Thursday, as the Fed Chair Jerome Powell gets ready to finish its two-day testimony before the US Congress.

Hawkish comments by Powell rattled Wall Street and underpinned the US Dollar (USD), recovering lost ground. The USD/JPY exchanged hands at 142.82 after hitting a low of 141.61.