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USDJPY is extending its rally, currently........>

YEN
YEN: USDJPY is extending its rally, currently trading at 111.29 having broken
firmly above its downtrend from the July 19 highs. The pair is pushing up
against uptrend support-turned-resistance, and a break above here would target
the the August 1 high at 112.15.
- The rally is being helped by the gains in US stocks and the backup in US bond
yields, but given the rise in Japanese real yields, yen weakness does not appear
justified by the fundamentals with US-Japan 10-year real yield spreads close to
7-month lows.  
- Yen crosses are trading in lackluster fashion with Friday's losses failing to
extend or reverse as AUDJPY remains in the trading range established Monday.

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