USD/JPY extends climb to fresh highs since 1998

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It looks like buyers are making a play and solidifying that break above 140.00. There is plenty of upside room to roam for the pair with the next key resistance region being closer to the psychological level near 145.00. As much as Japanese officials are trying to jawbone to slow down the pace of the yen decline, it is nothing more than a speed bump still at this stage.

With markets still sticking with the narrative of a more aggressive Fed and Treasury yields keeping the faith (10-year yields are up 4 bps to 3.23% today), the path of least resistance is still for a move higher in USD/JPY.

The next key risk event for the pair will only come next week via the US CPI data on 13 September.

The ECB will also be one to watch for bond yields but for now, there is scope for the move above to extend in the meantime.

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