The dollar is keeping firmer across the board, building on the momentum at the end of last week after Fed chair Powell reaffirmed the central bank's resolve in fighting inflation. The bond market was unamused on Friday but is seeing a stronger move today with yields climbing, and that is helping to underpin USD/JPY to propel higher on the day.
The high earlier hit 139.00 as 10-year Treasury yields briefly clip 3.13% - its highest in two months. There is a bit of light retreat now to 138.60 levels but the bias on the chart says that the pair is looking poised for a test of the July highs.
A daily close above 139.00 will be encouraging as buyers are also setting their sights on the 140.00 level next.
We will have to see if there is appetite to go chasing in the days ahead but if there isn't, we could see price action stall near the highs at least before we get to the US jobs report at the end of this week. That will be the next key risk event to watch out for in markets.
