USD/JPY Price Analysis: Extends the rally to five-year highs, closes in on 116.00

• USD/JPY clears November 2021 highs in a bid to recapture 116.00.
• US Treasury yields consolidate near multi-week highs on Fed rate hike expectations.
• Ascending triangle breakout on the 1D chart calls for more upside.

USD/JPY is sitting at the highest levels since January 2017, fast-approaching the 116.00 mark, as the US dollar sees a renewed buying interest across the board in the Asian trading.

The major continues to draw support from the recent strength in the US Treasury yields across the curve, as investors price in a March Fed rate hike while surging Omicron covid cases globally also keep the returns on the market elevated.

It's worth noting that Treasury yields moved higher throughout 2021 amid concerns about the coronavirus pandemic and inflation. The benchmark 10-year rates jumped above the 1.60%, rising as much as 13 basis points on the day.

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