USD/JPY bounces-back towards 107.50 amid rising Treasury yields

• Finds support from fresh Treasury yields buying, risk-on.
• Bulls await further momentum from the US data and Fedspeaks.

The USD/JPY pair bounced-off the 5-DMA support at 107.27 and now looks to regain the 107.50 barrier amid a fresh rally in Treasury yields, especially the longer-duration yields, with the 10-year yields trading near monthly tops of 2.895 percent, up 1 percent on the day.   

More so, improved risk sentiment amid rising oil prices and mostly higher European equities reduce the demand for the safe-haven Yen, in turn aiding the rebound in the spot. Both crude benchmarks rally over 1% so far this session.  

Focus now turns towards the US Philly Fed manufacturing index and jobless claims for fresh dollar trades, after the recent slew of upbeat US fundamentals while Fedspeaks will also keep the trader busy later on Thursday.

USD/JPY levels to watch

FXStreet’s Analyst, Omkar Godbole noted: “The momentum studies are biased bullish: 5, 10, 21-day MA is trending north, indicating short-term bullish setup. The relative strength index (RSI) holds above 50.00 and on the rise. Further, a big rounding bottom pattern is sighted in the 4-hour chart. A bullish 5MA and 10MA crossover is seen in the weekly chart. Clearly, things are looking good for the USD bulls. So, the pair could rally to 108.43 (descending/bearish biased 5-month MA). That said, a daily close below 107.62 (April 10 low) would put the bears back into the driver's seat.”