USD/JPY hits fresh 1-week highs above 110.00 as US yields keep rising

USD/JPY printed a fresh 1-week high at 110.19 boosted by rising US bond yields. The pair bounced near 109.80 and jumped toward 110.20  as yields climbed further. 

The pair then moved off daily high after Trump said that the UN resolution on North Korea was “another very small step, noting compared to what ultimately will have to happen”, according to Reuters. 

USD/JPY consolidating strong gains 

The pair has risen more than 200 pips compared to Friday’s close. It rose from the lowest in 10 months to the highest in a week. A recovery of the greenback across the board, a rally in Wall Street and the trend change in yields boosted USD/JPY. 

The Dow Jones is above 22,100 near record high levels while the 10-year yield just hit 2.17%, the highest level since August 28. The surge in yields weakened the yen in the market. 

Levels to watch 

As of writing, the pair is at 110.10, up 0.66% for the day. To the upside, resistance levels might be seen at 110.20 (daily high) and 110.65/70 (Aug 31 high). On the flip side, support could be seen at 109.65 (American session low), 109.20 (daily low) and 109.00.