September 29, 2022 23:41 GMT
USD/JPY rose to 144.80 on Thursday before trimming some gains amid a broad-based pullback in greenback crosses.
- U.S./Japan yield spreads were slightly larger come the end of the day, despite easing off wides in NY hours. 2-year gap grew 6.3bp, while 10-year differential rose 4.6bp.
- Equity sentiment was firmly negative post-Asia, with the VIX index resuming gains. Benchmark stock indices were softer across Europe and America.
- Spot USD/JPY last trades at Y144.41, a touch lower on the day. Bears look for losses towards Sep 22 low of Y140.36, while bulls set their sights on Sep 22 high/2.764 proj of the Aug 2 - 8 - 11 price swing at Y145.90/146.03.
- The market remains on the lookout for any updates on FX intervention matters, as well as the BoJ's reactions to the continued test of its YCC settings.
- Japan's economic activity data are crossing the wires at typing. The unemployment rate stayed at 2.5%, matching consensus, with retail sales and flash industrial output coming up shortly.