The pair is breaking above near-term resistance close to 106.50 and is closing in on a test of the 38.2 retracment level @ 106.68 at the moment. The jump higher comes amid a firmer dollar and weaker yen amid higher Treasury yields on the session.
Yields are moving up across the curve with 30-year yields having jumped up above 2.11%:
I reckon the latest move in bonds is much to do with a wave of profit-taking after the solid rally culminated in the yield curve inversion last week. There's the Jackson Hole symposium to look forward to later in the week and that's part and parcel of the game as well.
As TDS mentioned earlier, there's good reason for traders to take their money out considering how dovish the market has priced the Fed to be ahead of September.