USD/JPY moved lower as traders focused on the strong pullback in Treasury yields. The yield of 2-year Treasuries declined below the 4.70% level, while the yield of 10-year Treasuries settled below the psychologically important 5.00% level. Treasury yields moved lower as demand for U.S. bonds increaseed amid sell-off in U.S. equity markets.

Currently, USD/JPY is trying to settle below the 157.00 level. In case this attempt is successful, USD/JPY will head towards the next support, which is located in the 155.00 – 155.50 range.

On the upside, USD/JPY needs to settle above the resistance at 158.00 – 158.50 to gain upside momentum in the near term. In this case, USD/JPY will move towards the 160.00 level.

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