USD/JPY trades to its highest since March 2017
The range so far today is rather minimal but the high did hit 114.97 as buyers are looking to try and hunt for a break above the 115.00 handle.
The November 2017 high of 114.74 is a key level to try and keep above but preferably, buyers would like a break above 115.00 to solidify any further breakout at this point in time.
Treasury yields are looking a fair bit sluggish so far today with 10-year yields back down to 1.625% from around 1.64% earlier in the day.
But bond yields are staying elevated since the US CPI data release last week and that is continuing to prop up the dollar and keep yen pairs supportive somewhat.
Purely from a technical perspective though, USD/JPY may be on the cusp of a stronger breakout above the 115.00 handle. Beyond that, there is little standing in the way of a potential push towards 118.00 so that is something to be wary about.
While I would argue that such a move may be a bit of a stretch, it is hard to rule that out completely considering that the dollar is looking rather solid technically against other major currencies as well for the time being.
