USD/JPY backs off as US yields slip

The price action in the USD/JPY since this time yesterday saw the dollar forge higher, to set a fresh interim rebound high, at 153.86. That high came as US treasury yields rose to 4.34% in the 10 year note. However, they were already edging lower later in the session and that saw the dollar slip back into the US close. The USD/JPY ended the US session last night, at 153.36. Earlier today the dollar fell back a bit further, but so far it has not traded below the 153 handle. The low seen was set at 153.08 and at the same time those US yields are around 0.10% off the high seen yesterday. So, as you can see, there is a very direct correlation is in place there between the two. On Friday the Bank of Japan will decide on monetary policy and right now no one really expects any change in the current 0.25% OCR (official Cash rate). However, we also know that they are not happy with the USD/JPY on the rise again. There will be more to add on the prospect of that looming monetary policy decision over the next couple of days. The high seen in the USD/JPY earlier today was set at 153.46. It is currently trading at 153.30