The pair had a sniff above 120.00 early on in Asia Pacific trading before settling just below that but is now picking up again with a surge from 111.95 to a fresh six-year high of 120.33.
Ultimately, it is all about the 120.00 handle at this stage and whether or not buyers can keep up the momentum above the key psychological level. The shove higher in USD/JPY comes after the massive surge in Treasury yields yesterday, after Fed chair Powell opened the door for 50 bps rate hikes in the coming meetings.
There's pretty much little in the way of stopping yields from a massive leg up higher - at least in terms of the technicals, so that's something to watch out for in the days and weeks ahead.
But that isn't the only thing to be wary about in the bond market as the yield curve continues to flatten. 2s10s are now down to 16 bps as inversion prospects are starting to creep closer and be realised.
Going back to USD/JPY, it is tough to pick a top at these levels but the 124 to 125 region seems like the next key area for buyers to target.