A slightly higher dollar on the day sees the pair run up to hit 135.42 moments ago but buyers are still lacking a resolute determination to chase a firm break above 135.00 since the start of the month. The recent highs of around 135.50-58 will be key to watch but perhaps more importantly is the daily close.
As much as the dollar remains attractive, any major upside push in USD/JPY will have to be in sync with the signal from the bond market.
10-year Treasury yields are near unchanged now at 2.895% and that is just shy of its 100-day moving average of 2.898%, which has been a key level in containing action in the bond market as outlined in the linked post above.
For USD/JPY, a firm break above the resistance levels highlighted will open up the path towards 138.00 next with buyers perhaps targeting another attempt to try and get towards 140.00.
