USD/JPY has broken 135 the figure in Asian trade at the start of the week. On the monthly chart below, the prior highs from Jan 2002 are located at 135.16 and its blue skies above there to 147.67 and the 1998 summer highs: {chart} The yen has been sold off sharply by bears that have been motivated by the Bank of Japan's dovish rhetoric, announcing that it will stick with its ultra-accommodative policy stance despite the Federal Reserve and other central banks that are accelerating their tightening to tame inflation. ''The BOJ has made it clear that it will stick to its easy policy settings until it believes that core ... (full story)

The high today hit 135.17 and that just barely eclipses the 2002 high of 135.16. That marks the highest level that the pair has traded since 1998 (!). As mentioned last week, it was very much a matter of time before we get here and now that we are.. what comes next for USD/JPY? As yields continue to explode higher, it is tough to fight against the upside momentum in the pair. Even more so when you consider the technical implications and how little resistance there is on the way up. A push above 135.00 leaves little in the way of a jump towards the 1998 highs between the levels of 145.00 to near 148.00. I'd pin the ... (full story)