USD/JPY extends gains to the 108.50 area

• US data mixed: ISM-NY rebounds above expectations while Factory Orders decline. 
• Yen down across the board amid risk appetite and higher US yields. 

The USD/JPY pair rose further during the American session and printed a fresh daily high at 108.50. The Greenback is rising for the second-day in-a-row versus the Japanese Yen, recovering from the three-week lows it fell on Friday. 

Higher yields despite data 

US yields are higher today with the 10-year at 1.78 %, the highest since October 31. Also, equity prices in Wall Street and across the globe are up on Monday. Risk appetite weakened the Yen across the board. Some optimism regarding US-China trade talks continue to support the improvement in market sentiment. 

Regarding the Greenback is it modestly higher and it was not affected by mixed US data. Factory orders for September came in below expectations showing a decline of 0.6%, previously the ISM-NY Business Conditions Index for October presented a rebound from 42.8 to 47.7, above the 45.8 of market consensus. 

Technical outlook 

The rally that started after USD/JPY was rejected from below 108.00, gained momentum today and price rose back above the 20-day moving average, alleviating the bearish pressure. 

In the short-term, the bias points to the upside, but still, some bearish pressure is seen following the sharp decline of last Thursday. A consolidation on top of 108.55 would clear the way for an extension of the recovery. The next resistance could be located at 108.75. On the flip side, a retreat under 108.15/20 (Nov 4 low) should expose 108.00. Below comes the critical support 107.85/90 (last week lows).