USD/JPY is up 0.3% to 113.57 ahead of European trading
And that is despite Treasury yields coming off recent highs over the past two days, with 10-year yields seen at around 1.549% at the moment. For some context, the high at the start of the week hit 1.631%.
However, yen pairs are still relatively buoyant with USD/JPY keeping perky as buyers are still keeping near-term control and targeting the pivotal 114.00 level.
There is some minor support around 113.20 before the 100-hour moving average comes into play at 113.03. As such, keep above the latter especially and buyers will be able to hold near-term control and stick with a push higher towards the end of the week.
That said, bond market sentiment is still key and a further retracement in yields may limit any potential strength in yen pairs for the time being.
But at the same time, the technicals are tough to ignore. CAD/JPY is up 0.4% on the day currently and contesting a break of daily resistance @ 91.17-19 now:
There is key resistance from the 2017-2018 highs @ 91.58-64 nearby though, so keep that in mind when gauging any daily breaks for the pair this week.
