FXStreet (Mumbai) - The USD/JPY extended gains to a session high of 121.05 (200-DMA), while the 2-year treasury yield rose to its highest since September 17th. USD in demand The Greenback is in demand right from the early European session since the consensus seems to be building in the markets that Fed may move rates in December. The speculation is evident from the two-year yield, which trades at 0.77; its highest since September 17th. The focus now shifts to the US factory orders data due in the next few minutes. The action on Wall Street may not do much for the USD/JPY pair unless there is a serious risk aversion. USD/JPY Technical Levels Above 121.05 (200-DMA), the spot could rise to 121.50 (Oct 26 high). The next resistance is seen at 100-DMA at 121.79. On the other side, failure to stay above 121.00 handle could push the pair back to 120.75 (hourly 200-MA). For more information, read our latest forex news.