USD/JPY Back To Mid-March Highs As US Yields Continue To Rebound

The yen lost around 0.50% against the USD for Monday's session. We saw a continuation of themes from Friday's US session, where better US data supported the yield backdrop through Monday trading in the US. JPY was around the middle of the pack from a G10 standpoint, with broad based USD gains evident once again. USD/JPY tracks close to NY closing levels currently, just under 134.50. This is fresh highs in the pair back to mid-March.

• There was some resistance above the 134.50 level late in NY trade, so this region could be watched early today, while 134.75 represents a 61.8% retracement of the Mar 8 - 24 bear leg. Then the March 11 high comes in at 135.11. On the downside, the 20-day EMA comes in at 132.80.
• USD/JPY continues to follow US yield sentiment fairly closely, with the 2yr back to 4.19%, highs back to late March. The US Empire Manufacturing Index printing at 10.8 versus -18.0 expected, so a comfortable beat. The Citi US EASI has turned back higher following the recent correction and likely reducing growth slowdown fears to some extent.
• For Japan markets, the calendar just has Tokyo condominium sales for March out later. The prior read was -20.4%. New BoJ Governor Ueda will also attend parliament today.