USD/JPY is in the midst of a fresh breakout today, climbing 138 pips to 136.46. It's another 24-year high for the pair.
What's incredible is that the rally in this pair has come despite a terrible backdrop for global risk assets. If we see an extended bounce in global equities, it could turbocharge the move.
The risk continues to be that the Bank of Japan pulls the rug on yield curve control. They currrently maintain a cap of 0.25% on 10-year yields and make near-daily pledges to buy bonds in unlimited amounts. The market has been testing that over the past few weeks as futures are sold heavily. That's significantly raised holdings, which are now 65% of the Japanese government bond market.
Looking at the long-term chart, there isn't much standing in the way of 145-147:
