USD/JPY continues to trade above 130. However, economists at TD Securities expect the pair to face a tough resistance at cycle highs around 135.15.

USD/JPY is largely a function of US terminal rate expectations

“USD/JPY is largely a function of US terminal rate expectations, so until that debate is settled, it's going to be hard to sell.”

“We think the 131.35 cycle highs will be solid resistance as punching above might be harder to do without a major rethink on US terminal rates (that could come much later this year).”