USD/JPY jumps to its highest level since 14 September
The pair is breaking through near-term resistance close to 105.80 and that is seeing a quick push towards a session high of 105.94 currently in European morning trade.
Treasury yields are getting a solid push higher as well, with 10-year yields up by over 3 bps to 0.768% and that is underpinning yen pairs at the moment.
10-year yields tried to break its 28 August high of 0.786% at the start of the week but encountered a setback yesterday following Trump's news but are creeping higher once again today as the market is keeping more calm.
In the context of USD/JPY, buyers managed to keep near-term control and hold on to a test of the key hourly moving averages yesterday despite the softer risk mood.
And that has helped to set the stage for a push higher in trading today, towards 106.00.
In the bigger picture:
Clearing 106.00 will see buyers have more room to roam towards 100-day MA (red line) @ 106.54 next. But watch out for Treasury yields, that is the spot to watch for yen pairs at the moment as stimulus talks are getting heated and messy:
