USD/JPY and USD/CHF show reversal patterns with yield support

USD/JPY and USD/CHF are displaying bullish reversal patterns supported by favorable yield differentials, suggesting potential for continued upside momentum. Both pairs have formed technical reversal structures that, combined with rising US Treasury yields, particularly the 2-year note, are attracting buyer interest. The yield advantage continues to favor the dollar as US rates remain elevated compared to Japanese and Swiss counterparts, creating carry trade opportunities. Technical analysis reveals completed reversal formations in both pairs, with USD/JPY breaking above key resistance and USD/CHF showing similar strength patterns. The US Dollar Index's performance corroborates this dollar strength theme across safe-haven currencies. Market participants are positioning for further gains as long as yield differentials remain supportive and technical patterns hold. Key levels to watch include recent highs for both pairs, with breaks above potentially accelerating the upward moves amid sustained yield tailwinds.