USD/JPY moves up to 110.27, its highest level since 26 March last year
The bond market is stealing the show once again in trading today as 10-year Treasury yields continue to surge higher, now up 6.4 bps to 1.772%.
In turn, that is keeping the dollar bid while the yen is offered across the board. Consequently, USD/JPY has now pushed past the 110.00 handle with relative ease and is looking to consolidate gains above the figure level.
As mentioned earlier, keep in mind that there are large expiries seen rolling off tomorrow at 110.00-20 that might be a factor to consider.
However, if Treasuries continue to be sold off rather heavily, that overrides most of everything else in the market - as it has been the case over the past two months.
For USD/JPY, further resistance is only seen closer to 111.00 next with the highs from March last year seen around 111.50-71 thereafter.
The narrative in the market today is pretty much "keep calm and steepen on".
