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USD/JPY is poised...

USD/JPY is a key chart to pay attention to before the end of the week

Dollar strength this week has been a key theme and while the yen largely held its own in the early stages, it wasn't to be yesterday as USD/JPY buyers overwhelmed sellers to push for a daily close and break above the 111.00 level.

That previously held the upside push back in late March and also in the latter stages of June but buyers are now testing the waters in a quiet start to European trading.

The pair is keeping above 111.00 around 111.15 with a trendline resistance seen closer to 111.25 perhaps providing some room for trepidation for now.

Looking beyond that, the March 2020 highs at 111.50-71 is a key target before getting to the more important resistance level at 112.00.

Those will be key upside levels to watch if buyers can build on the latest break.

That said, one thing to note is that the push yesterday came largely on the back of dollar gains more than anything else. 10-year Treasury yields remain tepid around 1.47% and that may be offer some consideration that any upside may be limited unless the bond market also votes in favour of a push higher for yen pairs in general.

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