[MARKET UPDATE] USD/JPY extends to a new session high of 158.59, despite a lack of newsflow; JGB yields continue to fall from record highs seen earlier in the week

USD/JPY extends to a new session high of 158.59, despite a lack of newsflow; JGB yields continue to fall from record highs seen earlier in the week.

The USD/JPY's move to a new session high of 158.59 signals strong demand for the dollar amid a backdrop of declining Japanese government bond (JGB) yields, which may suggest market anxiety or expectations for easing policies from the Bank of Japan. This divergence could elevate further volatility in the pair, reflecting investor positioning ahead of any future monetary policy decisions.