USD/JPY has broken out of its recent 146-148 range, with the move catalysed by robust U.S. activity data, which further pushes back against the growth scare concerns that stemmed from the recent payrolls print.
Consequently, U.S. rates have seen an additional hawkish repricing with the odds of a 50bp rate cut from the Federal Reserve sliding to 25% from 50% prior to the data release.

With USD/JPY taking out resistance at 148.50, this opens the door for a test of 150, particularly if we see a close above resistance.
While it is difficult to lean against the correction in USD/JPY given that both risk assets and U.S. yields have picked up notably, traders may well look to fade this rally the closer we get to 150.

For starters, the benchmark U.S. 10-year US10YT=RR has yet to make a firm break of 4% which has thus far kept a lid on yields.
Meanwhile, doubts remain over the S&P 500 .SPX making a return to all-time highs, even more so as we head towards a seasonally weak period for stocks.

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