This doesn't come as much of a surprise as pointed out yesterday here. The thing about USD/JPY moves since March and more specifically since breaking above 120.00, is that there are pockets of space for buyers to roam in between key psychological levels and that is precisely what we're seeing again this week.
It started with 125, then 130, 135, 140, and now we're approaching 145. It's just been that kind of a story.
The 1998 highs at 146.79 to 147.67 will be another key resistance region to watch above 145.00 but for now, the figure level will be the crucial point to watch as the pair continues to run higher in trading this week.
The worst part for the yen is that the bond market is corroborating to pin the currency lower i.e. USD/JPY higher, with Treasury yields breaking higher and Europe looking to more debt again to try and dig themselves out of the energy crisis. 10-year Treasury yields are up another 2 bps to 3.36% on the day, holding at its highest since mid-June now.
