EUR/JPY Back To Early November Highs

USD/JPY gained 1.7% for Thursday's session, amid broad USD gains. We got close to 138.20 in the NY session, which is fresh highs back to the end of last month, before selling interest emerged (last at 137.80). The 20-day EMA comes in at 138.00, so this could be an important pivot point as we head into the weekend.

• The yen was a mid-range performer against the rest of the G10. Weaker equity sentiment did little to drive safe haven flows for the currency, with focus on higher yields, particularly post the hawkish ECB hike.
• EUR/JPY got above 146.70 in NY trading, before settling back to 146.40. The pair is back to highs from the first half of November.
• Today the local data focus rests with the preliminary PMI reads for December.
• The other focus point is how to fund the ramp up in domestic defence spending. A combination of higher corporate taxes, a rise in the income tax rate and higher tobacco taxes are being considered, although there isn't a consensus within the ruling party yet.