USD/JPY extends gains as the tail is wagging the dog

The dollar decided to make a move yesterday as it jumped higher against the rest of the major currencies, with USD/JPY pulling up to its highest in three weeks with a firm break above 135.00. That move is being extended today as price now climbs to 136.58, backed by a jump higher in Treasury yields as well.

From a technical perspective, it looks to be a clean break with buyers looking to target a move back towards the July high at 139.39 but also setting sights on the 140.00 mark.

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