USD/JPY has printed fresh highs since 2002. Economists at Westpac highlight that a break past 135.20 would clear the way toward the 137 level.

USD/JPY should be two-way at times

“Commentary from Bank of Japan officials suggests little inclination to change policy at this month’s meeting. Some have explicitly described any widening of the 10-year JGB yield target range from +/-0.25% as a rate hike.” 

“The FOMC’s near-certain +50 bp hike and hawkish statement do not guarantee a break of 3.20% on the 10yr T-note, so USD/JPY should be two-way at times. But a break of 135.20 opens up a lot of clear skies, perhaps initially eyeing 137.”