USD/JPY rises as JGB yields climb, yen weakens across the board

USD/JPY advanced during Asian trading Wednesday as Japanese government bond (JGB) yields continued their upward trajectory, weakening the yen across major pairs. The 10-year JGB yield's persistent rise reflects growing speculation about potential Bank of Japan policy normalization, though paradoxically, this is currently pressuring the yen as yield differentials with other majors remain wide. The dollar-yen pair found support from both rising JGB yields and continued US dollar strength from the previous session. Asian equity markets showed mixed performance amid the yield volatility, with Japanese stocks benefiting from the weaker yen. Currency traders are closely watching for any BOJ intervention signals as USD/JPY approaches psychologically important levels. The technical picture shows momentum favoring further yen weakness unless Japanese authorities step in. Near-term resistance lies at recent highs, while support has shifted higher, suggesting the uptrend remains intact for USD/JPY.