USD/JPY spikes to fresh session tops, around 108.15-20 area on upbeat US retail sales

• US monthly retail sales figures surpass market expectations and boost the USD.
• A modest pickup in the US bond yields remained supportive ahead of Powell’s speech.

The greenback picked up the pace in reaction to the upbeat US retails sales data and lifted the USD/JPY pair to fresh session tops, around the 108.15 region in the last hour.

Data released on Tuesday showed that the headline retails sales recorded a stronger growth of 0.4% in June, matching the previous month's downwardly revised reading and surpassing consensus estimates that pointed to a modest 0.1% rise.

Adding to this, sales excluding automobiles and the closely watched Control Group sales also bettered market expectations, which against the backdrop of a modest pickup in the US Treasury bond yields provided a goodish lift to the US Dollar.

Barring the initial reaction, the uptick lacked any strong follow-through as investors now seemed reluctant to place any aggressive bets ahead of the Fed Chair Jerome Powell's scheduled speech, which will be looked upon for fresh clues about the central bank's policy outlook.