EUR/JPY Finds Support Sub Simple 200-day MA

USD/JPY didn't revisit Thursday Asia Pac lows sub 141.00 post the local close. Moves back above 142.00 drew selling interest though and we track close to 141.90 in early Asia Pac Friday trade.

• Yen gained nearly 0.70% for Thursday's session, but was in the bottom half of G10 performers, as EU currencies dominated post a number of central bank decisions.
• The ECB pushed back against rate cut expectations, while Norges Bank delivered a 25bps hike. EUR/JPY recovered from lows sub 154.00 to be back at 156.00, note the simple 200-day MA for the pair rests at 154.25.
• For USD/JPY, the technical bias remains skewed to the downside. Focus is on 140.71, a Fibonacci retracement point. On the upside, key short-term resistance has been defined at 146.59, the Dec 11 high.
• Relative US-JP yield differentials point to further USD/JPY downside as well, with the US 10yr Tsy dipping sub 3.90% on Thursday, despite better data outcomes.
• On the data front we have preliminary PMIs for Dec on tap. Note the LDP will use more tax incentives to encourage wage increases (see this BBG link).