USD/JPY moves to session tops near 113.40

• Spot pushes higher amidst rising US yields.
• US 10-year yield approaching 2.39%, daily peaks.
• BoJ stayed unchanged, matching consensus.

The greenback is now gathering further pace vs. its Japanese counterpart, lifting USD/JPY to the area of daily tops around 113.40.

USD/JPY up on yields, looks to data

After bottoming out in sub-113.00 levels during early trade, spot managed to regain some traction along with the emergence of dip-buyers.

In addition, yields of the key US 10-year benchmark is extending the rebound from earlier lows in sub-2.36% area and is now looing to test the 2.39% neighbourhood, recording daily highs at the same time.

JPY met extra selling pressure after the Bank of Japan left unchanged its monetary policy stance at its meeting earlier in the Asian session, matching the broad consensus among investors.

Further out, the BoJ now sees inflation rising 0.8% in FY 2017/18 and 1.4% in FY 2018/19. Regarding GDP, the central banks now sees the economy expanding at an annualized 1.9% this year and 1.4% in FY 2018/19.

Data wise in the US docket, the S&P/Case-Shiller index is next on tap seconded by the Chicago PMI and October’s consumer confidence gauged by Conference Board.

USD/JPY levels to consider

As of writing the pair is gaining 0.16% at 113.36 and a break above 114.45 (high Oct.27) would target 114.51 (high Jul.11) en route to 115.51 (high Mar.10). On the other hand, the initial support aligns at 112.96 (low Oct.31) followed by 112.77 (23.6% Fibo of 107.33-114.45) and finally 111.74 (200-day sma).