The USD/JPY pair has lifted back above the 110.00 resistance. However, USD/JPY perhaps is not the best expression for USD strength at this juncture given the soft back-end UST yields, according to economists at OCBC Bank.
Laggard amid USD strength
“The bounce higher in back-end UST yields saw the USD/JPY supported amid the USD retracement on Monday. Nevertheless, the 10y UST yield may need to consolidate between the 1.50- 1.70% range for the pair to see more significant upside.”
“Not the preferred expression for USD strength at this point.”