USD/JPY rebounded from session lows and moved back towards the key 159.50 level. Treasury yields are moving higher despite weak Retail Sales data, providing additional support to USD/JPY. The yield of 2-year Treasuries climbed above the 4.15% level, while the yield of 10-year Treasuries settled above 4.69%. Treasury yields moved higher as bond traders focused on rising oil prices.

If USD/JPY manages to settle above the resistance level at 159.50 – 160.00, it will head towards the next resistance at 161.50 – 162.00. It remains to be seen whether BoJ is ready to intervene in case USD/JPY climbs above the psychologically important 160.00 level.