• USD/JPY climbs to multi-week highs beyond 135.00.
• Higher US yields, USD-buying bolster the upside in the pair.
• The Fed’s Beige Book comes next in the US docket.

USD/JPY resumes the monthly rebound and advances to new highs past the 135.00 mark on Wednesday.

USD/JPY up on dollar, yields

USD/JPY sets aside Tuesday’s retracement and clinches new multi-week tops in the area north of 135.00 the figure on the back of the ongoing bounce in the greenback and further upside in US yields across the curve.

Indeed, the USD Index (DXY) trades close to the 102.00 region, while yields extend the upside to levels last seen in mid-March. In Japan, the JGBP 10-year yields remain side-lined below the ley 0.50% region.

Earlier in the Asian trading hours, Industrial Production in Japan contracted at an annualized 0.5% in February, while the Reuters Tankan Index held steady at -3 in April. In the US, MBA Mortgage Applications shrank 8.8% in the week to April 14 ahead of the release of the Fed’s Beige Book later in the NA session.

USD/JPY levels to consider

As of writing the pair is gaining 0.17% at 134.31 and the break above 135.13 (monthly high April 19) would expose 137.09 (200-day SMA) and then 137.91 (2023 high March 8). On the flip side, the initial support emerges at 133.37 (55-day SMA) seconded by 130.62 (monthly low April 5) and finally 129.63 (monthly low March 24).