As the risk mood improves on the day, we are seeing USD/JPY start to track higher again with the pair now touching 135.75.
After some pushing and pulling around 135.00 in the past few days, buyers are starting to stick their neck out again and will be hoping to try and retest last week's highs around 136.70. That will be the next technical challenge for the pair this week.
There isn't much to really point to the catalyst for the push higher this week but better risk appetite is certainly one of it - at least so far today. 10-year Treasury yields are also now up over 3 bps to 3.228% and that is helping to keep yen pairs more buoyed as we get things going in European trading.
Elsewhere, S&P 500 futures are now up 0.8% while European indices are pushing gains of just above 1% at the moment.
