USD/JPY prints one-month highs above 104.30

• US Dollar extends gains versus Yen; Wall Street indexes bounce after opening.
• USD/JPY gains for the fourth consecutive day, eyes the 100-day SMA.

The USD/JPY extended the move to the upside following the beginning of the American session and climbed to 104.39, reaching the highest level since December 10. It remains near the highs, holding a strong bullish tone and posting the fourth consecutive gain.

A stronger greenback continues to boost the pair. The US Dollar Index is at weekly highs above 90.50. The political turmoil and the latest round of economic data did not affect the dollar.

In Wall Street, main indexes opened are down on Monday, but significantly off lows. The Dow Jones drops by 0.37% and the Nasdaq by 0.85%. After the opening bell, both indexes rebounded, and the yen weakened.

A critical support for the rally of the dollar that started last week is higher US yields. The 10-year hit earlier at 1.136%, the highest level since the March spike.

From a technical perspective, the USD/JPY holds a positive tone in the short-term but still moves below an eight-month downtrend line, currently around 104.70, at the same level the 100-day simple moving average is seen. A break clearly above 104.70 could remove the negative bias, suggesting more gains ahead.

Technical levels