The market is doing all sorts of weird things today
While commodity currencies are pinned down due to fears of the trade rhetoric escalating, USD/JPY is not playing by the same rules. The pair is rising higher ahead of the US jobs report as US yields continue to climb too.
10-year Treasury yields are now up by almost 4 bps to session highs of 2.897% and that's lifting USD/JPY. Apart from that, European equities are having a solid day, while US equity futures are also doing well ahead of the open and that's not hurting risk sentiment for the moment.
I still have a feeling the market is being too complacent about fears of escalation in the trade rhetoric, but what will be will be. The US jobs report later will be the next key risk event, and of course any headlines on trade will also be a factor in trading today. For now though, the market is taking it as 'no news is good news'.