Dollar-Yen Pair Reaches Three-Week High Amid Rising US Yields

The dollar-yen pair has been making gains in the European foreign exchange market, reaching near its three-week high. As of 20:00 Japan time on the 10th, the pair stood at 158.78 yen per dollar, which is roughly 29 sen stronger than the level seen at 17:00. This increase is attributed to a renewed rise in long-term U.S. interest rates, with the WTI crude oil futures edging higher to around mid-$79 per barrel.

Trading focused on the widening interest rate differential between Japan and the U.S., providing support for the dollar-yen pair. However, the psychologically significant 159-yen level loomed large, preventing further upside for the dollar-yen pair. After touching 158.89 yen, the pair lost some momentum and settled into a consolidation pattern in the upper 158-yen range.

The euro-dollar pair showed notable topside heaviness, trading at $1.1555 per euro as of 20:00. While it approached the session high of $1.1567, follow-through buying was limited, and it was pushed back to around the $1.1550 level. The trading range remained narrow, indicating a lack of directional conviction.