USD/JPY keeps higher close to 108.50 at the moment
The dollar is holding higher across the board, with the antipodeans suffering the most as overall risk sentiment keeps on the softer side amid the tech selloff today.
But USD/JPY is also keeping higher as 10-year Treasury yields are threatening to breach 1.60% in European morning trade thus far. The pair hit a high of 108.64 on Friday and that could very well be up for the taking later on in the session.
Just be mindful that the 100-month moving average for the pair sits @ 108.76 and might offer some resistance in case buyers are chasing for a move higher.
That said, as things stand, it is all about the yields story for yen pairs at the moment and with the Fed out of the picture until next week, it is tough to imagine the market changing course completely during this period.
As much as there is consideration for repatriation flows into the yen ahead of the fiscal year-end and what not, Treasury futures were dumped at a record pace last week and that sentiment outweighs everything else at the moment.
