USD/JPY climbs to 114.37, its highest since October 2021
The daily/weekly close today is going to be a big one as USD/JPY looks to seal a push above the 114.00 level, which has limited gains in the pair since May 2017.
There is some added resistance around the region of 114.36-74 so there is that to consider but beyond that, it is tough to pick at key resistance areas until 118.00 potentially.
A lot still depends on sentiment in the bond market but sometimes, it is just tough to fight against the technicals when it is as glaring at this.
Other yen pairs are also seeking further breakouts and that is an ominous signal.
As long as bond yields keep elevated - which I'm still leaning towards attributing this week's moves to flows more than anything else, so it is likely to mean-revert - then that will continue to underpin yen pairs over the coming weeks.
