USD/JPY takes the bids to refresh a one-week high around 130.90 as strong Treasury yields underpin the bullish bias during Monday’s Asian session.

Also keeping the USD/JPY buyers hopeful is the bullish outlook in the options market, as portrayed by the highest weekly risk reversal (RR) in six, the ratio between call and put premiums.

That said, the weekly RR rose to 0.375 by the end of Friday, the highest since March 25, whereas the daily print rose to 0.313 per the latest reading.

Inflation fears and hopes of faster/heavier Fed rate hikes keep the US Treasury yields directed towards the north.  Also, fears of worsening covid woes in China and the global leaders’ sanctions on Russia keep the USD/JPY on the front foot, mainly due to the US dollar’s safe-haven appeal.

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