USD/JPY reaches 133.00 for the first time in three days, as US Treasury yields provide support

The USD/JPY exchange rate exceeded 132.80 and climbed to 133.15, the highest level since Tuesday. Following the release of numerous economic reports from the United States, US Treasury yields climbed, which weakened the Japanese Yen.

The most significant piece of news from the United States was the Core Personal Consumption Expenditure Price Index, which rose 0.2% in November, as predicted, and 4.7% from a year ago, a decline from October's 5%. The Federal Reserve monitors inflation indicators on a regular basis.

The decline in durable goods orders was 2.6% worse than predicted. The Michigan Consumer Sentiment Index increased to 59.7 in December, above the original estimate of 59.1. The 5.8% increase in November New Home Sales to 640K exceeded market expectations of 600K.

Following the release of all economic data, Wall Street stock prices are plummeting, just as they did on Thursday, when positive economic data caused a selloff. The difference on Friday is that bond yields are reacting with greater vigor, resulting in an increase in the USD/JPY exchange rate.

The pair is trading below 133.00 with a bullish intraday bias. The next potential level of resistance above the daily high could be around 133.50. The biggest downside support is the 132.50/60 band, which is the confluence of a horizontal level and a weekly low-drawn uptrend line. A decline in price would change the intraday bias from bullish to neutral or bearish.