USD/JPY rose even as U.S. yields slipped, reflecting how traditional yield-spread relationships have broken down. Hedging costs, persistent Japanese trade deficits, and structural dollar demand have altered capital flows. A sharp unwind of Japanese investment abroad remains a key systemic risk, as it could tighten global liquidity and pressure U.S. yields.
Key Levels: Support at 147.61 | Resistance at 148.37
Investor Takeaway: RSI at 61 with upward convergence suggests further gains; new capital flow dynamics add complexity beyond simple yield spreads.
