USD/JPY hits a 10-month high above 147.85

<p>USD/JPY is extending its gains in Asia morning trade. </p><p>Data overnight from the US sent yields higher again, the spread between the US and Japan has been, and continues to be, a driver of the higher USD/JPY. </p><ul><li><a href="https://www.forexlive.com/news/heres-why-the-beat-on-ism-services-pmi-on-wednesday-had-such-an-outsized-impact-on-mkts-20230906/" target="_blank" rel="follow" data-article-link="true">Here's why the beat on ISM Services PMI on Wednesday had such an outsized impact on mkts</a></li><li><a href="https://www.forexlive.com/news/us-august-ism-services-545-vs-525-expected-20230906/" target="_blank" rel="follow" data-article-link="true">US August ISM services 54.5 vs 52.5 expected</a></li></ul><p>Continued strong US data argues for a 'higher for longer' Federal Reserve.</p><p>Yesterday we got aggressive verbal intervention out of Japan:</p><ul><li><a href="https://www.forexlive.com/centralbank/japan-official-with-verbal-intervention-on-yen-kanda-wont-rule-out-response-20230905/" target="_blank" rel="follow" data-article-link="true">Japan official with verbal intervention on yen – Kanda "won't rule out response"</a></li></ul><p>That's been shrugged off.</p>

This article was written by Eamonn Sheridan at www.forexlive.com.