USD/JPY is nearing the Asian high after non-stop bidding in the back half of US trading. The pair is up nearly a full cent from the lows and 55 pips on the day now.

The rally comes as US Treasury yields — especially at the long end — ratchet to the highs of the day. Some of the positive sentiment also extends from stock markets and the overall risk trade, which is undeterred by the war in the Middle East.

Eyes are also on Congress as a July 4 goal for Trump’s big, beautiful budget bill looks increasingly out of reach. Republicans are squabbling over SALT deductions and fiscal savings in the bill.

Zooming out, today’s move is mostly insignificant as the pair consolidating within the range of the past three weeks. There is something brewing though with a series of higher lows and lower highs, creating a wedge that could dramatically break out.

I would guess this won’t take long to break out.

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