USD/JPY consolidates below key 109 area

• USD/JPY caught between risk which US yields sink, capping the greenback's advance. 
• Fed speakers coming back to the market's attention. 

USD/JPY is trading at 108.80 and around flat on the day in a quieter Asian market on Tuesday.

The market has absorbed the volatility following the weekend headlines after Turkish President Erdogan fired the hawkish central banker who had raised the benchmark rate by 200bp to 19% on Thursday.

TRY was quoted as much as -17% lower initially which weighed on USD/JPY, forcing it to a low of 108.55 in the open.

Meanwhile, the US dollar also rose but the move was limited by US treasury yields drifting lower on Monday’s session, following some risk arising in Turkey and sanctions placed on China.

The two-year US government bond yields remained at 0.14%, and 10-year government bond yields fell to 1.66% levels before rising up to 1.69%.

Meanwhile, Fed speakers will come back from the blackout period this week.

FOMC’s Michelle W. Bowman, James Bullard, Raphael Bostic, Thomas Barkin, Lael Brainard, and John Williams will all be speaking.

However, it is highly unlikely that any new ground will be broken this week by Fed speakers on the Fed's policy stance following last week's FOMC meeting.

As for geopolitics, the White House said it was evaluating its next steps toward China after testy talks in Alaska last week between key US and Chinese officials and sanctions over alleged abuses in Xinjiang announced earlier on Monday.

"We continue to have grave concerns about China's crimes against humanity and genocide on Uighurs in Xinjiang," White House spokeswoman Jen Psaki said. When pressed about future sanctions, Psaki left the door open.

"We will be evaluating what the appropriate next steps are in close coordination with our allies around the world," she said.