133.50 Region Still Offering Resistance, Tankan Survey Continues Recent Trends

USD/JPY is comfortably off earlier session highs, last around the 133.00 level. Not long after the open we breached 133.50 (high of 133.55) but once again found selling interest above this level, much like Friday's session from last week.

• Higher US yields, driven by the oil price spikes remains a headwind for the yen (US 2yr back to 4.09%, +6bps), but the weaker equity backdrop (in the US futures space) is likely providing an offset.
• Yen is firmer on a cross basis against AUD and NZD, along with EUR and GBP. It remains down against NOK and CAD, but is away from session lows on these crosses.
• On the data front, the Tankan survey continued recent trends, with a further pull back in the manufacturing index (to 1, versus 3 expected and 7 prior). Non-manufacturing sentiment was better at +20, although this was in line with expectations.
• Capex intensions fell noticeably to 3.2% versus 14.2% forecast and 19.2% prior. Also out was the final reading of the March PMI (nudged higher to 49.2 from 48.6).