The USD/JPY currency pair rebounded from a recent low around the 156.40-156.35 range to reach a two-month high on Thursday, driven by elevated US bond yields. This marked a recovery from a one-and-a-half-week low seen the previous day.
According to FX Street, the pair gained strong follow-through momentum during the Asian trading session, reflecting the influence of higher US yields on the dollar's strength against the yen.
For Japanese investors, the move underscores the ongoing sensitivity of the yen to shifts in US interest rates, which continue to shape FX market dynamics amid global economic uncertainties.