USD/JPY bulls advance towards 135

The USD/JPY pair is testing important barrier as it moves forward in the bullish trend. Bears want 132.80, while bulls aim for a break of 135.11.

The price of the pair increased by 0.5% over the day, moving between a low of 133.95 and a high of 135.13. The yield on two-year Treasury notes, which is sensitive to forecasts for the US central bank’s monetary policy, increased hit a one-month high of 4.286% on Wednesday, helping the US dollar gain strength. 

Since the beginning of April, the market has carved out a bullish bias, and a break of the 135.11s opens risk to the 137s. If 134.28 and 133.83 are broken, the risk moves down to the 133.20s.