USD/JPY consolidates below 111.50 amid steady USD

• USD/JPY pull off the accelerator on Thursday in the early Asian trading hour.
• US Dollar Index hovers near a one-year high despite lower US-T bond yields.
• Higher ADP numbers fuels taper expectations, Initial Jobless Claims eyed.

USD/JPY consolidate gains on Thursday in the early Asian trading session. After posting strong gains in the previous session of nearly 90-pips, the pair seems exhaustive near the higher levels.  At the time of writing, USD/JPY is trading at 111.49, up 0.02% for the day.

The US benchmark 10-year Treasury yields fell 6 basis points to 1.52% on Wednesday as risk appetite tumbled with the sell-off in equities and commodities. The expectations of early-then-expected rate hike following strong US private-sector job. The US Dolle Index (DXY), which measures the greenback performance against its six major peers, traded near 94.50.

Investors remained optimistic that the US government shutdown could be avoided. US Senate Minority Leader Mitch McConnell told a close group of Republicans that his party would support an extension of the federal debt ceiling into December. 

On the economic data front, the Consumer Confidence Index jumped 1.1% to 37.8 in September, the strongest reading since February 2020.

As for now, traders are waiting for Bank of Japan (BOJ) Governor Hariko Kuroda speech and US Initial Jobless Claims to gauge the market sentiment.

USD/JPY additional levels