Yen rebounds from 11-month nadir

Dollar fell against yen on Friday after yen marked 11-month lows recently following strong hints by the Federal Reserve for another interest rate hike this year.

Such bullish outlook boosted US treasury yields to incredible highs and boosted dollar's standing against rivals.

Yen was hurt as well after Bank of Japan decided to maintain interest rates at record lows last week, while vowing to continue supporting the economy until inflation reaches 2%. 

There's no sign so far that the Bank of Japan might start to unwind its ultra-easy monetary policies, heaping pressure on the currency.

USD/JPY last traded at 148.97, the highest since October 2022. 

Thus is the yen is trading dangerously close to 150, at which Japanese authorities might directly intervene to boost the currency. 

The yen is merely suffering from the widening policy gap between US treasury yields and Japanese government yields. 

The gap in 10-year government bonds between both countries surged to 382 basis points on Monday.