Following the strong NFP release on Friday and the S&P 500 close above 1600, two other risk benchmarks are now in focus. The Dow Industrials closing above 15,000 and USD/JPY closing above 100.00 would likely imply a greater bullish backdrop than we initially expected. For USD/JPY, the bullish conditions are riper than they have been for the past month. While a sideways correction is still in play for the time being, bullish momentum and the more recent turn higher in US 10y yields suggest that 99.80/100.00 is likely to come under assault; a close above 100 would confirm a resumption of the strong bull trend that began in September last year.
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Barclays