The dollar is faring slightly better on the day but the usual year-end caveat applies. As much as the move here looks enticing, be reminded that it comes amid thin liquidity conditions. That makes it tough to really trust any breakout.

In the case of USD/JPY, the weekly close will be an interesting spot. Buyers have been trying and testing the resistance region around 114.37-74 since October trading. There was a brief break above 115.00 last month but ultimately, buyers failed to stick with that.

That will also make the November high @ 115.52 a notable resistance point but I'd argue the weekly close - particularly one above 115.00 - a more notable technical level to keep an eye out for.

As much as the chart looks promising, we'll have to see if there is any follow through in the new year. There's nothing quite like a false break amid thin market conditions during year-end.

For today, USD/JPY can take heart in steadier yields and higher US futures once again. 10-year Treasury yields are up 1.4 bps to 1.494% while S&P 500 futures are up 0.2% on the day. However, the above mentioned caveat is still very much in play.