The Japanese yen seems the most sensitive to US yield moves, and the USDJPY consolidation was very tight relative to the size of the prior range and the size of the move in other JPY crosses. If US yields poke back higher, the big 110.00 area in USDJPY could come under fire  the last level that bars the way to 115.00 there. On the flip-side, if rising yields go away as a threat for a time and the “Asian malaise” that is showing signs of moving into US equities as well, both the USD and the JPY could add on to their recent strength. 

So far, in USDJPY has been very shallow and now we have the pair looking back toward the cycle highs. The 110.00 level a bit higher continues to look important as the approximate current top of the years-old descending channel, but also as a psychological level of  note and the last area before the more well-defined 114.50 area  Japan’s financial year end is March 31.