USD/JPY Pierces 20-day EMA Resistance, Light Data Calendar Until Thursday

USD/JPY pushed higher late in Asia Pac trade on Monday, breaching the 147.00 handle as we progressed through the offshore session. US trade was very quiet given those markets were out for the US Labor day holiday. The pair tracks near 146.90 in early Tuesday dealings. The yen lost 0.50% for Monday's session, comfortably the worst G10 performer for the session.

• For USD/JPY, the pair pierced resistance at the 20-day EMA (146.85) and we currently hold just above this level. EUR/JPY also rose above this resistance point, the pair last near 162.60/65. For USD/JPY 149.39 is the August 15 high as the next potential upside target.
• Yen was pressured by weaker global core fixed income trends. TY, Bund & gilt futures have all traded through Friday's low as the London session unfolded. Potential heavy supply in coming sessions weighing on sentiment in this space. German cash yields closed 2.6-3.7bps higher. US cash Tsy yields will re-open this morning.
• In the equity space, sentiment was mostly positive, although EU gains were modest, while US equity futures rose a touch. Oil climbed up from intra-session lows on Monday, but remains off late August highs.
• The local data calendar just has August monetary base figures today, unlikely to shift market sentiment. Tomorrow has services PMI revisions, while Thursday has scope to shift sentiment with July labor cash earnings figures out.