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USD/JPY hits 1-week highs as US yield rise

FXStreet (Córdoba) - USD/JPY broke above 120.30 during the American session and climbed to 120.42 hitting the strongest level in a week. The pair still remains below last week highs that lie at 120.55, but it has been able to rise above the level it had before the NFP report.

Currently it trades at 120.36/38, up 40 pips form the level it opened the week and holds a bullish short-term tone despite a release earlier of a weak economic report in the US: the ISM Non-Manufacturing index declined more than expected in September.

The yen is among the worst performers in the market on Monday, particularity again commodity currencies weakened amid risk appetite. The Dow Jones was up more than 1% while US government bonds yields were rising sharply. The 10-year bond yield was back above 2.0%.

USD/JPY approaching 121.00

Above 120.60, attention would turn to 121.00 and whether or not USD/JPY is able to post a daily close on top. During September it traded above 121.00 on various occasions but it was always rejected and pulled back. If it ends above it could break a trading range that has been in place since early September.

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