USD/JPY pulls higher as the bond market returns to play

<p>Treasuries are back open for business and with yields pushing higher again, that is underpinning the dollar ahead of European trading. In particular, USD/JPY is now up 0.3% to 146.87 as it looks to retest the highs for the year. That comes after buyers held yet another defense of the 145.00 mark on Friday last week.</p><p>10-year Treasury yields are up 4.3 bps to 4.216% currently and that is putting a light bid in the dollar in general. AUD/USD is now down to the lows for the day at 0.6405, lower by 0.8%, after the RBA also left the cash rate unchanged in an extended pause.</p><p>With yields pushing higher, equities are also looking suspect and perhaps even more so after another disappointing PMI reading from China earlier <a href="https://www.forexlive.com/news/chinese-caixin-services-pmi-for-august-518-expected-536-prior-541-20230905/" target="_blank" rel="follow">here</a>.</p><p>Going back to USD/JPY, buyers look poised to keep the momentum so long as the 145.00 mark continues to hold with there being room to explore towards 150.00. But as always, keep in mind that we are nearing intervention territory but so far, Japanese officials have been less verbal about that as of late.</p>

This article was written by Justin Low at www.forexlive.com.