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The US 10-year treasury yield clocked a high of 2.64 percent in the overnight trade, as expected, forcing a falling wedge breakout – a bullish reversal pattern – on USD/JPY’s hourly chart.  

So, a re-test of 111.90 could be on the cards. The bullish argument would further gain credence if the current hourly candle closes above the hourly chart resistance of 111.63.  

As of writing, the pair is trading at 111.60, having clocked a high of 111.69 soon before press time. The bullish setup would be invalidated if the spot finds acceptance below 111.42 – the low of the previous hourly candle.  

Hourly chart

Trend: Bullish