The pair continues to trade at its highest in five years and barring any major risk-off shift, it may be tough for sellers to turn the tide unless we see a technical air pocket at the 116.00 level itself.
Otherwise, the dollar can take comfort from higher yields but bond traders will have to figure out the next move and that will in turn validate or invalidate the soaring start in USD/JPY in the opening two days of the year.
Elsewhere, equities are keeping calm and advancing further with S&P 500 futures now seen up 0.4%. In Europe, major indices are up around 0.7% to 1.3% and that is also not quite helping with yen sentiment.
Going back to USD/JPY, keeping above the 24 November high @ 115.52 will be key going into the close this week. That will help to establish some base for an extended run higher, in which the technicals suggest could go to 118.00 next.