10-year Treasury yields are up to 1.62%
After falling below 1.60% last week, 10-year yields in the US are on the climb again this week as it moves up by 1.6 bps to 1.621% currently. The push higher there is underpinning yen pairs in general with USD/JPY now up to a session high of 108.33.
The latest base being formed in yields is helping to keep support at 108.00 intact since trading yesterday and that is carrying over to today as well.
For now, the latest bounce isn’t amounting to much but just keep an eye in case.
As for USD/JPY, buyers will be looking to snap a run of six consecutive daily declines but have to do more to wrestle back some near-term control. The 100-hour moving average in the pair is seen @ 108.66 and that’s the first key level to watch in that regard.
Going back to Treasury yields, the push higher just puts the action back into the range between 1.60% and 1.75% as seen previously.
As we have learned in the past few weeks, there needs to be more convincing for the next leg higher in yields. That said, as long as economic data stays more exuberant, any material downside may also be unlikely to last.