We got as high as 78.74 around midday in NY and have shifted into consolidation mode. USD/JPY has gotten a lift from firmer US bond yields which have surged 6-7 bp at the long-end of the curve. We’re up about 20 bp since late last week in the wake of the firmer-than-forecast US employment report.
Demand from Japanese retail and institutional investors for AUD/JPY and EUR/JPY has picked up in recent sessions, helping give the JPY crosses a broad lift as global risk-aversion has ebbed on the combination of hopeful signs that the Europeans are getting their act together (relatively speaking) and on hopes that the US economy can continue to muddle along without the need for quantitative ease.
Traders not a mix of stops and sell orders around 78.80 but sell orders predominate toward 79.00. We trade now at 78.67.