USD/JPY climbs toward daily highs as US yields rise further

USD/JPY gained momentum during the American session and rose approaching to 9-month highs, that reached earlier at 114.81. The greenback rose in the markets pushed by another rise in US bond yields and also as the Dow Jones turned positive. The stock index is up 0.38% but the Nasdaq and the S&P 500 remain in negative territory. 

Regarding economic data, in the US, the ISM manufacturing index showed higher-than-expected numbers: it came in at 53.2 in November above the 52.2 expected. On the flip side, initial jobless claims rose to 5-month high at 268K (vs 253K expected). 

JPY keeps falling

The yen continues to be among the weakest currencies in the market. USD/JPY pulled back below 114.00 and found support at 113.80. The bearish correction was short-lived and the pair rose back to test the 114.70/80 zone. 

Currently, it trades at 114.45/50, up 0.05% for the day and 150 pips above the level it closed last week. To the upside, resistance levels might be seen at 115.00 (psychological), 115.50 and 115.95 (Jan 20 low). To the downside, support could be seen at 113.80 (daily low), 112.50 (Nov 25 low) and 111.30/35 (Nov 28 low).