On Friday of last week the USDJPY traded in a range between the upper 156-yen range and around 157.0 yen while the Tokyo market was closed. The pair reached a high of 157.0 shortly after GMT 12:30 before pulling back, and trading for the day closed at 156.83 yen.

As a so-called "5/10 day" (a date ending in "5" or on a multiple of "10" on which Japanese companies often settle foreign exchange payments), today the USDJPY is seeing dollar strength as long-term bond yields in the Japanese government bond market have reached their highest levels since 1999. As of GMT 04:30, the pair hit a high of 157.29 and continues to trade firmly.

Looking at the 1-hour chart of the USDJPY (as of GMT 04:30 on January 5), the pair has broken above 157 yen and, despite being pushed back with upper wicks, continues to climb while forming higher lows. The next target appears to be around the 157.7‑yen level.

(20-period Bollinger Band, showing ±1 and ±2 standard deviations)

• GMT 15:00 U.S. December ISM Manufacturing PMI