USD/JPY holds 157.50 as Japan 10-year yields hit 14-year high

USD/JPY remains elevated at 157.50 despite Japanese government bond yields surging to fresh multi-year highs, with the 10-year JGB yield touching 1.24%, its highest level since 2011. The yen's persistent weakness comes amid growing speculation about potential Bank of Japan intervention, though no action has materialized. Rising JGB yields typically support the yen but are being offset by broad risk-on sentiment and continued dollar strength from US yield advantages. Market participants are closely watching for any shift in BoJ rhetoric ahead of next week's policy meeting. Technical analysis shows USD/JPY consolidating near recent highs, with resistance at 158.00 and major support at 156.80. The pair's ability to hold above 157.00 despite surging domestic yields highlights the yen's fundamental weakness. Traders should monitor intervention risks, particularly if the pair approaches the psychologically important 160.00 level.