USD/JPY climbs to 143.80 as rising US yields boost dollar demand

USD/JPY has advanced 0.3% to 143.80, driven by a strong US dollar amid rising US Treasury yields. The 10-year US Treasury yield has climbed 4 basis points to 3.74%, enhancing the appeal of the greenback. The dollar's strength comes despite mixed US economic data, with the US Markit Manufacturing PMI falling to 48.5 in May from 50.2 in April, indicating a contraction in factory activity. However, the Services PMI unexpectedly rose to 55.1 from 53.6, suggesting resilience in the services sector. The divergence between the manufacturing and services sectors has led to uncertainty about the overall health of the US economy. USD/JPY faces immediate resistance at 144.00 (psychological level), followed by 144.50 (multi-week high). Support is seen at 143.20 (5-day MA), and a break below this level could trigger a pullback towards 142.80.