USD/JPY reached a high of 157.71, the strongest level since recent highs near 157.99. US Treasury yields climbed, with 2-year yields at 5.002% and 10-year yields at 4.638%, reinforcing expectations that the Fed will keep rates higher for longer and may cut only once later this year. Technical indicators show the pair trading above key levels, while option expiries around 156.5-158.5 with significant dollar volumes could help contain further moves. Import demand in Japan remains weak, but exporters are positioned ahead of the 158.00 threshold.
"The article highlights a strong USD/JPY rally to near recent highs, driven by rising US Treasury yields and expectations of sustained Fed rates, directly explaining the positive end‑of‑day return."