JPY Remains Firm, With 104.19 Support Under Pressure

JPY continues it recent outperformance, rising against most others in G10 this morning to pressure USD/JPY to a new multi-week low. This narrows the gap with first support at Y104.19, the late July low. A break below here would put the rate at the lowest level since March.

Equities are mixed, with European markets lacking conviction. US futures paint a similar picture, with the e-mini S&P in very minor positive territory, just below the overnight highs.

Newsflow has been few and far between, although the UK's slightly better-than-expected retail sales release for August drew some GBP buying in early European hours, allowing GBP/USD to reverse overnight losses to head into the NY crossover just below the Thursday high of 1.2998.

AUD is the weakest in G10, partially reversing the outperformance at the beginning of this week, as the mixed outlook for equities prompts some profit-taking. AUD/USD sits just above 0.73 handle support.

Canadian retail sales and prelim Uni. of Michigan confidence numbers are the data highlights Friday. The first Fed speakers following Wednesday's FOMC decision are due, with Bullard, Bostic and Kashkari all due to speak.