There are many moving stories in markets this week but this is arguably the only one worth mentioning among major currencies. The dollar is starting to regain its strength on the week, backed by higher Treasury yields. 10-year yields in the US have nudged up to 4.63% with 2-year yields even climbing back up to 4.26% overnight.The narrative there continues to be driven by renewed tensions in the Middle East, weighing on the inflation outlook and in turn sparking a more hawkish Fed outlook - again. As oil prices continue to ramp up again, it just feeds into the whole setting above.And in that lieu, we're seeing a one-two punch again for USD/JPY to the upside. On the one hand, the dollar is finding better footing from the above narrative. On the other, the yen continues to be punished by the continuation in the Middle East conflict.The path of least resistance continues to be for a move higher in USD/JPY. And that won't change unless the fundamentals do - which have not since October last year.(USD/JPY daily chart)The misery just continues for the yen at this stage as the Takaichi trade continues to run in the background. And things just get worse when you throw in a more damaging immediate economic outlook from the Middle East conflict, as well as the fact that the BOJ rate hike path has been muddied by the weakening economy itself and cost-push inflation coming into the picture.With a run up to fresh 40-year highs above 163.00 this week, all eyes will once again be on Tokyo to see if Japan's ministry of finance will step in.It's all about intervention risks again for USD/JPY. The question now is when and where will Tokyo officials draw the line in intervening in the market.If the move higher in USD/JPY is held this week, it will mark three straight weeks of gains. And so far, the move higher has been a rather gradual one. But even so, every nudge higher is pretty much testing the limits and tolerance of Japan's ministry of finance. Since the end of April when they intervened, the currency pair has gained 4% and over 600 pips in the past three months.So if traders are not going too far, too fast, how much is too much then for Japan to take in?It's a slow bleed but Tokyo officials know very well too that any intervention efforts now will not yield much success. That especially with an overwhelmingly negative backdrop for the yen currency.In essence, they have to pick their moments to strike. But if you'd ask me, I would argue that the threat of intervention is still the most effective and efficient ammunition they have to work with at this juncture. And their only option is to keep with that and hope for something to change with the situation in the Middle East, at least for starters. This article was written by Justin Low at investinglive.com.