It could be month-end flows or haven bids, or maybe it was a bit of both that saw inflows into bonds this week. But as we get things going in June, Treasury yields are now seeing a decent bounce on the new day/month. 10-year yields are up 4.6 bps to 3.683% and that is helping to provide a bit of a lift to USD/JPY today.
USD/JPY vs US Treasury 10-year yields (%)
The pair did slip towards the 139.00 mark at the start of trading today but has caught a modest rebound now to 139.80, trading to the highs of the day.
The 140.00 mark though is still where sellers are drawing the line after the drop earlier in the week. The 100-hour moving average is also seen at the figure level and will provide additional near-term resistance for buyers at the moment.