The USD/JPY clocked a fresh session high of 122.70 in the US session, while the treasury yields in the US trade mixed. The pair trades at its highest since Dec 9 and is eyeing 123.00 handle. The bigger-than-expected drop in the US initial jobless claims was enough to strengthen the bid tone on the USD and overshadow the weaker-than-expected drop in the Phily Fed manufacturing number. The short-duration treasury yields hold onto gains since the Fed hinted at four hikes in 2015. Meanwhile, the 10-yr and the 30-yr treasury yield have trimmed gains. The immediate resistance is seen at 123.01 (July 27 low), above which the pair could test 123.55 (76.4% of 125.856-116.082). On the other hand, a break below 122.12 (61.8% of 125.856-116.082) would open doors for a drop to 121.59 (200-DMA).