USD/JPY facing resistance at Friday's high.

The US dollar is climbing on higher stocks and Treasury yields but USD/JPY has been reluctant to climb above Friday's high and erase the declines after a weak University of Michigan consumer sentiment report.

The elements are aligned for US dollar strength today and it's been one of the best days for USD this month. It's impressive given that there hasn't been a US catalyst and shows the underlying demand for dollars.

But in the short term, the inability (at least so far) to break the Friday high is a concern.

The main factor remains economic data and the Fed. On Tuesday, the US calendar is relatively light with only housing starts on the docket.