USD/JPY is trading near 141.00, which would signal a return to levels not seen in 24 years

The US dollar/Japanese yen exchange rate is getting closer to last week's 24-year high of 140.80. In the wake of the US dollar index (DXY) hitting a fresh 20-year high of 110.03, the asset is gaining a great deal of momentum. The DXY has been trading at high levels and is expected to continue its upward trend.

The DXY has risen to prominence on currency markets as optimism about US employment data (as measured by Nonfarm Payrolls or NFP) has persisted over the previous week. The Fed's satisfaction with the US economy's August job gains is boosting the asset's value (Fed). Even though pricing pressures are having a significant influence on household income, recent depletion signals are not sufficient to persuade consumers to raise their spending habit (quantity-wise). Therefore, higher employment creation will encourage Fed policymakers to sound hawkish without hesitation.

Future attention will center on the release of the US ISM Services PMI. As the US economy is recognized for its IT giants and its offering of IT services to emerging nations, the value of the US Services PMI is unusually high. From 56.7, economists expect the economy to slow to 54.9. This may put an end to the DXY's dream rally, and the asset may encounter considerable challenges.

Due to the holiday on Monday, the US markets won't be trading, thus the asset's movement will be determined largely by market sentiment.

Investors are waiting for Tokyo to release secondary economic statistics on Monday. There is consensus that the Jibun Bank Services PMI will hold steady at 49.2. Although the release of Japan's GDP figures will continue to be a major forthcoming event. The GDP is forecast to increase to 0.7% from 0.5% in the third quarter. The annualized figure, at 2.9%, is much higher than the 2.2% that was previously reported.