The recent movement in the forex market, particularly in yen pairs, can be attributed to the rise in bond yields. The 10-year Treasury yields have increased by 5 basis points to 4.301%, which has provided support to yen pairs in today’s session. The USD/JPY pair, specifically, is witnessing a resurgence in buying momentum as it reclaims control over its key hourly moving averages. By surpassing the 100-hour moving average, the near-term bias for the pair has shifted towards a more bullish stance.
However, it is crucial to note that any further upward movement in the USD/JPY pair requires confirmation from the bond market. Although bond yields are currently on the verge of a breakthrough, it has not yet been achieved. This indicates that the bond market still holds significant influence over the direction of yen pairs, including USD/JPY.
Overall, the recent surge in yen pairs can be attributed to the impact of higher bond yields. The USD/JPY pair, specifically, is experiencing a shift in sentiment towards a more bullish outlook after reclaiming control over its important moving averages. However, it is vital to keep a close eye on the bond market as any significant advancement in yen pairs would require approval from the bond market first.