USD/JPY is moving higher as traders focus on rising Treasury yields and react to PMI reports from Japan. Manufacturing PMI declined from 54.9 in August to 54.1 in September, compared to analyst forecast of 55. Services PMI decreased from 52.5 to 51.6, compared to analyst consensus of 52.7. Numbers above 50 show expansion.

From the technical point of view, USD/JPY attempts to settle above the resistance level at 158.00 – 158.50. If USD/JPY manages to settle above the 158.00 level, it will head towards the next resistance level, which is located in the 160.00 – 160.50 range.