USD/JPY looks to July highs with 140.00 also in sight

The dollar is keeping firmer across the board, building on the momentum at the end of last week after Fed chair Powell reaffirmed the central bank’s resolve in fighting inflation. The bond market was unamused on Friday but is seeing a stronger move today with yields climbing, and that is helping to underpin USD/JPY to propel higher on the day.

The high earlier hit 139.00 as 10-year Treasury yields briefly clip 3.13% – its highest in two months. There is a bit of light retreat now to 138.60 levels but the bias on the chart says that the pair is looking poised for a test of the July highs.