Yen Under Pressure as USD/JPY Hits Highest Level Since July

The USD/JPY pair is trading near its highest level since late July as the yen continues to come under pressure from various factors.

Rising JGB yields, concerns about fiscal sustainability under Prime Minister Sanae Takaichi's spending plans, and the persistent appeal of the carry trade are all weighing on the yen.

The dollar, on the other hand, is benefiting from safe-haven demand amid escalating US, Iran tensions and expectations of a Fed rate hike driven by inflation risks from higher oil prices.

Morning analysis suggests that USD/JPY may see a near-term pullback towards 158.97 before resuming its move higher towards 160.27 and potentially 160.67, with Friday's US jobs data likely to shape the next directional move.