USD/JPY Volatility as US Yields Break Above 5%

The US dollar has seen some volatile trading against the Japanese yen as the week begins. Despite this, it has managed to rally slightly since Monday morning.

This move comes amidst a significant development: the US 10-year yield has broken above the 5% level for the first time. This will likely have a major impact on various market dynamics.

The Bank of Japan is set to announce its interest rate decision on Thursday, and expectations suggest it will be a hike. Similarly, the Federal Reserve's decision on Wednesday is expected to result in another hike. While some may see this as a 'wash', the actual outcome could have far-reaching consequences.