USD/JPY is up a little on the day to 110.67, its highest since 14 July
The pair is continuing to track higher since last week, building on the rising momentum in Treasury yields - which was supported by the US jobs report on Friday.
10-year Treasury yields are now closing in on 1.36%, maintaining a bounce after the double-bottom seen close to 1.13%:
Going back to USD/JPY, the pair has pushed past the 23 July high @ 110.59, with the 14 July high @ 110.70 in focus now. If buyers can push past the latter, the 111.00 level is the next obvious psychological resistance before getting to the year's highs @ 111.65.
The momentum is siding with buyers as the focus in the market leans more towards more positive Fed taper expectations, with the technical picture in the bond market also helping the case for a continued rebound in yields - at least for now.
The former contributes to a modestly performing dollar while the latter helps to pin down the yen. That said, COVID-19 fears amid delta variant concerns are still a key risk that needs to be monitored in case it brings about a fresh wave of risk aversion in the market.