USD/JPY trades to session highs and tests the 200-day moving average
The pair is trading to a high of 105.57 to start the session as the dollar firms slightly across the board. This comes as we see another shove higher in Treasury yields, with 30-year yields crossing 2% for the first time since February last year.
Of note, this is keeping USD/JPY underpinned as price tests the 200-day moving average (blue line) @ 105.57 once again currently.
The key level helped to stall the upside move at the end of last week but with yields threatening to break higher as the market focuses on the reflation narrative, a breach will likely see the upside momentum quickly extend further towards 106.00.
It's all about the bond market so far to start the new week.
