The pair is attempting to push past the highs for the year around 109.36 as buyers are capitalising on a tick higher in Treasury yields to start the session, 10-year yields rising by 1.7 bps to 1.65% on the day.
The better risk mood in the market overall is also helping to keep the yen grounded with the likes of AUD/JPY and CAD/JPY starting to see buyers wrestle back near-term control.
Looking back at USD/JPY, a push above the highs of 109.36 opens up the potential to retest the June highs @ 109.69-85 next. That will be the key region to watch before the 110.00 handle starts to come into the picture for the pair.
As for AUD/JPY, the pair is looking to hold a break above its 100-hour moving average now as buyers wrestle back some near-term control this week:
CAD/JPY is also seeing a modest rebound, with the loonie backed up by higher oil prices on the day, with the pair now testing its 200-hour moving average: