USD/JPY hits 110.00 for the first time since 26 March last year
The figure level will still offer a key battleground for buyers and sellers in the day ahead but keep your eyes on Treasuries for more clues. 10-year yields are up by nearly 4 bps to close in on the March highs just below 1.75% and that is pressuring the yen lower.
There are large expiries for USD/JPY layered at 110.00-20 rolling off tomorrow so that might still help to keep price action in-check ahead of the month-end, quarter-end.
But with the market eagerly awaiting more infrastructure spending plans by Biden and the Fed holding the steeper for longer narrative, we are quickly shifting back to another selloff in Treasuries and that is still among the key factors at play currently.