Following a correction to 131.55, the USD/JPY resumed the upside, breaking firmly above 132.00. It is trading at its highest level in a week at 132.55/60. It is up by 175 pips, the biggest daily gain in a month.

The pair has been moving all day with a bullish bias. On Asian hours it was supported by a broad-based recovery of the US Dollar. More recently, the move higher gained speed boosted by higher US yields.

The US 10-year Treasury bond yield reached 3.61% and the 2-year climbed to 4.14%, both at the highest levels in a week. On Wall Street, US equities opened with strong gains. The Dow Jones is up by 0.70% and the Nasdaq gains 1.30%.

The combination of risks appetite and higher US yields, as the banking crisis fades, weighs on the Japanese Yen. The currency is the worst performer on Wednesday among the most traded currencies.