The U.S. dollar gained on Monday, climbing towards a 3-1/2-month high, as a broad rise in Treasury yields spooked investor sentiment in stock markets.
Having fallen 4% in the last quarter of 2020, the dollar has strengthened more than 2.4% year-to-date against rivals as investors expect the broad rise in U.S. bond yields to weigh on stretched equity valuations and boost the greenback's appeal.
The USDJPY market is bullish, extending the breakout climb into new highs and calls for a pressing climb to 108.82. Any corrective dips should only last 1-2 days and likely hold Thursday’s accelerating rally. Only a close under 107.27 marks a near term reversal and calls for a retracement to test 106.70 support.
Resistance 2 108.82
Resistance 1 108.54
Support 1 108.08
Support 2 107.80