A rise in Treasury yields and oil prompted by the U.S. exit from the Iran nuclear accord has ended this month's USD/JPY correction and revived the quest to clear the 200-DMA, which was last at 110.19.
It's also near the trend high of 110.05 set on May 2.
A close above the Tenkan at 109.35 would target 110.05/19.
If cleared, 110.85, the November 2017 low and 61.8 percent of the 114.73-104.56 November-March drop, will be next.
USD/JPY came into May overbought and losing some momentum, partly because 10-year Treasury yields retreated after the being rejected by the 2014 peak at 3.04 percent.
With yields back above 3 percent today and daily RSI on the rise after correcting to neutral readings, USD/JPY looks cheap.
The 110.05-108.65 pullback corrected 38.2 percent of the 106.62-110.05, April 9-May 2 rise, not the entire gain from March's 104.56 bottom, suggesting scope beyond this month's high and the 200-DMA.
Trade and Iran after effects linger as potential risk-off and JPY-positive threats, but rising U.S. yields and oil favor a higher USD/JPY in the meantime.
Prices are also deriving support from EUR/JPY's rebound off its 200-WMA with yesterday's 129.24 trend low.