The pair is resuming its upside momentum from last week, seeing a technical breakout above the late April to early May highs around 131.00 in trading this week. The move comes alongside a resumption in the bond market rout with 10-year Treasury yields rising back above the 3% mark yesterday.
The bond selling continues to play out with sentiment compounded by the RBA hiking rates earlier by 50 bps to 0.85%. That is seeing Australia 3-year bond yields jump to their highest since 2012, now at 3.265%. 10-year Treasury yields are also up another 1.5 bps on the day to 3.053% at the moment.
In turn, USD/JPY is continuing its march higher towards 133.00 with the charts showing little standing in the way of a push towards 135.00 next. It's tough to fight the technical momentum at the moment with the push also lending itself to further dollar strength on the day.
