The pair is trading near the highs today as buyers are looking to try and test waters above the 125.00 level currently. The high on the day hit 125.05 but it is all about the daily/weekly close in my view. A firm break above the figure level will help to potentially set off the next leg higher for yen pairs in general.
The 2015 high may offer some resistance @ 125.86 but beyond that, there isn't anything on the way towards 130.00.
USD/JPY is up 0.6% on the day with the latest jump helped by the ongoing rout in the bond market. Treasury yields are jumping and all it takes is a little push for the pair to really break out more meaningfully above the 125.00 mark.
Update (0617 GMT): Here we go. The pair is now up 95 pips to a high of 125.27 on the day.
