The pair is trading to the highs for the day currently around 135.30 levels as buyers try to gather conviction for a firm break and hold above the figure mark. The dollar itself is lagging amid more positive risk appetite but the yen is the worst performer on the day, not helped by rising Treasury yields and also the BOJ being the last man standing.
The high last week hit 130.59 and I reckon if we get a break above that, we could see the pair start to run as the next upside leg starts to impose itself on price action.
For now, buyers are continuing to knock on the door but amid the policy divergence between the Fed and BOJ as well as the ongoing pressure on the bond market, it looks like the 135.00 handle is just waiting to be the next domino to fall in USD/JPY since the run higher in March.