The yen weakens to its lowest level since 1986 as rising U.S. yields widen the dollar’s interest rate advantage.
USDJPY surged to a 40-year high of 162.89, driven by climbing U.S. Treasury yields. The 10-year yield rose 3.4 basis points to 4.632%, while the 2-year yield gained 3.2 basis points to 4.246%, reinforcing the dollar’s yield advantage.
The pair broke above the July 1 high of 162.833, extending a bullish trend with minimal resistance until the 1986 peak near 164.50. Buyers defended support at 162.399-162.508 during the Asian session, fueling further gains.
Technical momentum remains strong, though traders are monitoring potential intervention risks as the yen approaches multi-decade lows.