There's nothing better for the US dollar than higher Treasury yields.
Since Powell's hawkish speech at Jackson Hole, the market has been pricing in a higher path for US rates. The terminal top is now 3.95% in March and that has steadily risen.
Two year note yields are indicating that won't be held for long with rates at 3.51% but up 6 basis points today. It's the first trip above 3.5% since 2008.
The rise in yields is a big tailwind for USD/JPY, especially with the BOJ still committed to yield curve control. USD/JPY broke the July high today and now only has the psychological 140 level as resistance before the highs from the late 1990s.
In the bigger picture, the rise in yields also adds to angst around the economy, particularly housing. US 10-30 year yields are creeping towards the June highs and up around 10 bps on the day.