As Tokyo begins on Wednesday, USD/JPY maintains its recent positive bias while gaining bids to retest the intraday high near 134.40. The recent increase in the yen pair can be attributed to stronger treasury yields.
US Retail Sales for July is expected to decline from 1.0% to 0.1%. This will provide next directional move for the yen before the release of FOMC meeting minutes.
Technical perspective is tilted to the upside. Focusing on the hourly scale, $134.50 acts as the immediate resistance and a break above this level will push prices towards $135 and a possible test of $135.5 monthly high.
A pullback can be expected before the possible next leg up. Support is seen at $133.80-50 zone.