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  • DXY prints fresh monthly highs above 91.50, points to further gains.
  • US yields hold upside trend supporting the dollar.
  • Economic data from the US came in above expectations, NPF on Friday.

The USD/JPY is rising for the seventh consecutive trading day, and it has accelerated to the upside. The pair consolidated above 105.00 and jumped to 105.49, reaching the highest level since mid-November.

The key driver continues to be a stronger US dollar across the board and higher yields. The US 10-year yield stands shy of 1.16% and the highest since March. The greenback is rising across the board, even against emerging market currencies. Wall Street indexes are up by more than 0.50%. 

The DXY is up by 0.30%, at 91.50, a level not seen since early December. The gains were moderated by the rally of the pound following the Bank of England meeting that boosted GBP/USD.

Economic data from the US showed a larger-than-expected decline on jobless claims, supporting expectations of a positive surprise on Friday from the official employment report. The range in non-farm payroll now goes from a loss of 200K jobs to a gain of 450K. Also on Friday, in Japan, the household spending report for December is due.

Technical factors also contribute to the rally of USD/JPY. The pair broke an eight-month trendline on Monday, pulled back to the line and resumed the upside. The next resistance emerges at 105.65/70, the November high.

Technical levels