The pair did see a bit of a dip towards 120.60 yesterday but has quickly recovered to be back above 121.00 in trading today.
This is still one of the key charts in trading this week, as buyers are looking to solidify a breakout above the 120.00 handle. For now, any upside leg extension is slightly on hold as Treasury yields dip back a little yesterday. 10-year yields peaked at 2.417% but are now seen at 2.335% ahead of European morning trade.
For me, as long as USD/JPY keeps above 120.00, it still signals a bullish view for most yen pairs with the likes of AUD/JPY and NZD/JPY in particular continuing to look attractive on their respective breakouts.
There isn't much on the economic calendar for the rest of the week to really shake things up so expect trading sentiment to largely be dictated by the mood in the bond market.
