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  • USD/JPY rises further during US session amid risk appetite and a stronger US dollar.  
  • Greenback heads for the highest close in almost two weeks versus the yen.  

The USD/JPY pair rose further during the US session and climbed to 113.64, the highest level since November 15. Near the end of the day, is hovering around 113.60, up 70 pips for the day, the best performance in more than a month.  

The greenback was already rising versus the yen and gained more strength in Wall Street as it erased losses versus European currencies. The DXY erased losses and hit levels on top of 97.00, a 1-week high.  

The yen remains weak in the market late on Monday and is among the worst performer on the back of risk appetite and higher US yields. The 10-year rose back above 3.05% while the Dow Jones is up 1.30% and the Nasdaq 1.70%.  “Financial markets seemed to recover at the beginning of the week on the back of positive news on Brexit negotiations, Italy’s 2019 budget plan and a rebound in oil prices. However, investors’ focus will be mainly on Xi-Trump talks at the G-20 leaders’ meeting later this week as trade tensions continue. The release of FOMC minutes and economic indicators for the US, the EZ and China will also be in the spotlight this week“, said analyst at BBVA Research.  

USD/JPY Technical levels

If the US dollar keeps rising, the immediate resistance is seen at 113.70 (Nov 15 high), followed by 114.00/05 and 114.20 (Nov 12 high). On the flip side, now support levels could be seen at 113.45, 113.15 (European session low) and 112.85/90 (Nov 19 high).