USD/JPY Tests Key Resistance as 10-Yr Yield Hits 5%

The 10-year Treasury yield's break above the 5% threshold is reshaping dollar technicals heading into this week's Fed meeting. USD/JPY has pushed toward a well-defined resistance zone that has capped rallies on prior yield spikes, with the pair's RSI climbing into overbought territory on the daily chart.

A confirmed close above this resistance band would open room toward the next Fibonacci extension, while failure to hold gains could trigger a pullback toward the 50-day moving average. Momentum indicators suggest bulls remain in control, but the looming Fed decision adds volatility risk to any breakout attempt.

Traders watching yield-sensitive pairs should note that MACD histograms are flattening even as price pushes higher — a classic divergence signal that often precedes short-term consolidation before the next directional move.