USD/JPY is trying to settle above the 158.50 level as traders focus on rising Treasury yields and react to Household Spending report from Japan. The report showed that Household Spending increased by +0.1% month-over-month in August, compared to analyst forecast of +0.5%. On a year-over-year basis, Household Spending declined by -3.1%, compared to analyst consensus of -3.6%.

USD/JPY has already made several attempts to climb above the 158.50 level, but these attempts yielded no results. If USD/JPY moves above 158.50, it will gain additional upside momentum and head towards the next resistance, which is located in the 160.00 – 160.50 range. RSI is in the moderate territory, so there is plenty of room to gain momentum in case the right catalysts emerge.