The recent push up in USD/JPY and JPY crosses appears to have been given a fresh boost with a revival in risk sentiment, exemplified in the Nikkei 225 index's rally.
Trade war concerns sent the Nikkei down through support around 22,000 on July 2 to a low of 21,462 on July 5.
The index has since recovered, rallying to 22,321 on July 10, with large foreign investor buying evident throughout.
While the US Trade Representative's publication of a fresh China tariff list prompted a knee-jerk selloff to below 22k the following day, the impact was short-lived and the Nikkei has since rebounded sharply.
USD/JPY was not as affected by recent risk-on/off market behaviour, having based at 109.37 on June 25 before legging up to 111.14 on July 3, according to EBS data, then falling back again to a range on the 110 handle.
It has since taken off, breaking up above an assumed top in the 111.35-40 window in conjunction with good buying of various JPY crosses, especially by foreign investors.
The Nikkei is up around 22,500 this morning, helping USD/JPY rise to 112.78.
A test of 113.00 and higher could come soon, as long as the Nikkei rally continues.