USD/JPY jumps after initial jobless claims; US 10-year yields back above 4%

The US dollar has extended further following the initial jobless claims report. The big winner is USD/JPY, which is now nearly 150 pips higher as yields rise.

US 10-year yields are up 4 basis points and trading just above 4% after falling as low as 3.67% on Monday.

Yesterday, the Bank of Japan retreated from a hawkish stance in light of a rout in Japanese equity markets and a surge in the yen. With the reversal, the yen is back under pressure and US trader may try to break the top of the range at 147.95.

This article was written by Adam Button at www.forexlive.com.