USD Rallies Broadly as Treasury Yields Surge; USD/JPY Nears 164.00

The U.S. dollar strengthened across the board as Treasury yields climbed sharply, with both the 2-year and 10-year yields rising 5–6 basis points, drawing safe-haven flows amid falling equity markets and surging oil prices. Crude oil jumped nearly 5%, adding to inflationary concerns and reinforcing the case for higher-for-longer U.S. interest rates. USD/JPY continued its relentless advance to fresh four-year highs, closing in on the psychologically important 164.00 level. Above that, the next major upside target sits near 164.50, a level that traces back to 1986 swing highs, underscoring how extended the move has become. The combination of rising yields, risk-off sentiment in equities, and elevated energy prices created a powerful trifecta of dollar-supportive conditions. Traders should be alert to potential Japanese intervention rhetoric as USD/JPY approaches historically significant levels. Broad dollar strength was evident across major pairs, with commodity and risk-sensitive currencies underperforming. Near-term, the yield trajectory remains the primary driver for USD direction.