The pair has been rather quiet earlier in European trading but it is now gaining alongside the dollar in general. This comes as Treasury yields have pared its earlier decline to be flat on the day. 10-year yields are now at 4.21% from a low of 4.175% earlier in the session. This has helped USD/JPY to climb up to 146.80 levels - its highest since November last year:
Here is a look at the bigger picture:
The pair is continuing to keep above the pivotal 145.00 mark and that is keeping buyers in control in general. That despite fears of Japan intervention, though officials there have been rather quiet on yen moves as of late. But still, as we move closer towards 150.00, it is a risk consideration for USD/JPY longs.
That being said, the fundamental backdrop continues to side with a push higher for the pair, so long as the bond market continues to play ball. And unless something changes on that front, the dollar will also find reason to stay underpinned in general.
