FXstreet.com (Edinburgh) -The USD is gathering steam now, as the risk appetite seems to be taking a breather on Tuesday and pushing the USD/JPY beyond the triple-digit resistance.

USD/JPY back to 100.00

The Japanese yen has resumed its depreciation as risk appetite trends have re-emerged after the poor US Payrolls last Friday. In the same tone, the gap between JGB yields and overseas bond markets continues to widen, removing support for the yen. There is no further news regarding the sales tax hike although PM S.Abe would encourage more growth-oriented measures. “This textbook combination of fiscal tightening and looser monetary policy is set to keep the yen weakening. For now USDJPY is likely to remain supported by modest expectations of the Fed tapering its quantitative easing. But over the medium term, the risk of another major increase in Japan's quantitative easing is also set to push the currency pair higher over the next few months”, assessed Mansoor Mohi-uddin, Director of FX Strategy at UBS.

USD/JPY key levels

The pair is now up 0.45% at 100.02 facing the next hurdle at 100.24 (high Sep.6) followed by 100.45 (highs Jul.24/25) and finally 101.05 (high Jul.22). On the flip side, a breakdown of 99.47 (low Sep.10) would open the door to 99.34 (low Sep.9) and then 99.25 (cloud top).