Treasury Yields Surge, USD/JPY Breaks Above 155

USD/JPY has broken above 155.00, reaching a one-week high as Treasury yields surge to their highest level since 2007. The 10-year Treasury yield has reached 5.03%, while German and French bond yields are also on the rise.

The increase in Treasury yields is driving the broader market, with inflation fears back in focus due to rising oil prices caused by geopolitical tensions.

Markets are now pricing in a 25 bps rate hike from the Fed at Wednesday's meeting, which would further support the dollar.

The direction of USD/JPY will depend on what policymakers signal comes next, and whether Treasury yields remain elevated.