USD/JPY slips as global bond yields retreat from multi-decade highs pre-NFP

The dollar eased against the yen and franc as global bond yields pulled back from the multi-year and, in some cases, multi-decade highs printed earlier in the week. The move began overnight, with long-end JGB, gilt and Treasury yields retreating after an aggressive steepening episode driven by fiscal supply concerns and reduced conviction on near-term rate cuts. The unwind removed some of the yield-differential support that had underpinned USD/JPY, while safe-haven demand for CHF and JPY firmed at the margin as equities stabilised. Long-end volatility remains the dominant cross-asset driver, and bond direction is currently dictating FX rather than the reverse. Attention now shifts to Friday's US non-farm payrolls report, the key input for Federal Reserve pricing into the next meeting. USD/JPY faces support near 147.00 and 146.00 with resistance around 149.00 and the 150.00 psychological barrier. A soft payrolls print would likely extend the yield retreat and pressure the dollar; a strong number risks re-igniting the yield surge and renewed carry-trade demand.