The USD/JPY pair is back above 123.00 levels, tracking the rise in the treasury yields ahead of the monthly manufacturing data release in the US.
Eyes US data
The traders await the US ISM and Markit manufacturing PMI data in the US. Markets would be interested to see if the sector added jobs in November. Meanwhile, demand for the safe haven Yen could also be influenced by the action in the US stocks.
The 10-yr treasury yield and the 2-yr yield rose more than one basis points, thereby pulling the USD/JPY pair above 123.00 levels ahead of the US data.
USD/JPY Technical Levels
The pair clocked a high of 123.19 before trimming gains to trade around 123.10. The immediate resistance is seen at 123.34 (previous day’s high), above which the gains could be extended to 123.756 (Nov 18 high). On the other side, support is seen at 123.00, which, if taken out could see the pair re-test the hourly 200-MA at 122.79 levels.