FXStreet reports that Benjamin Wong, Strategist at DBS bank, said that further upside on USD/JPY is contingent on US 10Y yields cracking a 1.72%.

“The outlook on the US 10-year yields is contingent on a terse break of the 1.72% mark. The outlook appears contingent on a plausible bullish inverse head-and-shoulders pattern being triggered if the neckline around 1.72% can be pierced – remember this pattern is yet to be triggered but has the scope to do so. In the interim, this backdrop does provide a binge of support for USD/JPY as US yields hold their own. 

“The moot question is whether USD/JPY can trigger a breakout above the channel’s 112.23 top. Should the breakout be successful, the breakout augurs a target sandwiched between two Fibonacci extensions contouring 113.25 and 114.31.”