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Brent above $91 lifts USD/JPY as 10-year yield tops 4.6%

With the US 10-year yield back above 4.6%, USD/JPY is once again nearing levels tied to Japan’s weakest Yen in 40 years, according to market coverage.

Reported · Written up by our desk · Major Pairs

Markets struggled to settle on a single narrative as investors weighed conflicting geopolitical headlines, including reports that mediators proposed a 10-day ceasefire between Washington and Tehran that President Donald Trump may reject. With no confirmation from either side, traders largely avoided big directional positions and kept most major asset classes in relatively narrow ranges, Action Forex said.

In FX, the stronger oil tone helped the dollar edge higher alongside a modest rise in US Treasury yields. Brent moved back above $91 a barrel, and the US 10-year yield returned above 4.6%, a setup the outlet links to USD/JPY once again approaching levels associated with the Yen’s weakest point in about 40 years.

Action Forex also pointed to the timing around Japan’s market schedule, noting that Japanese authorities did not intervene during Monday’s holiday despite thinner liquidity. It added that if oil prices and Treasury yields continue to rise, market participants may increasingly test Tokyo’s tolerance for further Yen weakness.

The outlet said the rise in energy costs could feed inflation expectations, which can keep upward pressure on yields, a mix that has historically supported the dollar against the yen. Separately, it noted sterling faced pressure as UK Prime Minister Andy Burnham named John Healey as chancellor, and trade policy remained in focus as US and Mexican officials prepared for a third round of talks on revising the USMCA.

Latest closeBrent $84.94 ▼0.0%|USD/JPY 162.33 ▲0.2%

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