This is a painful correction waiting to happen
What is happening in USD/JPY right now is bucking what we have come to know over the years and this is something to consider for yen traders down the road.
The old saying in the market is that "the bond market is always right". And if that proves to be the case, the recent divergence in USD/JPY is going to be set for a painful correction at some point in the future.
I'm still skeptical about how much higher can USD/JPY run after filling the May 2019 gap but there isn't anything from a technical perspective to suggest a major correction just yet.
In any case, I'd be wary of PMI data releases from Europe, UK and US tomorrow. That could prove to be catalysts to pour could water on the recent run higher in yen pairs.
