After a bit of a breather in May, the pair is restarting the surging upside momentum again so far in June. The pace remains rather unrelenting with a 600 pips push since the lows around 127.00 last week.
Upon clearing short-term resistance just above 131.00, there is little standing in the way now of a push towards 135.00 - at least from a technical perspective.
The light jawboning by Japanese officials will continue to fall on deaf ears as their tone hasn't changed whatsoever over the past few months. That speaks volumes to their conviction to really intervene in the market.
The latest push higher is supported by a resumption in the bond selling over the past two weeks. There was a bit of a pause yesterday but yields are pushing higher again today. 10-year Treasury yields are up over 3 bps to reclaim 3.00% again at the moment.
Going back to USD/JPY, the strong momentum continues to also provide some tailwind for the dollar in general. And that will be even more unnerving if the pair breaks past the 135.00 level.
