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JPY: USD/JPY Breaks Above 150.00 Amid Core Yield Surge, Data Calendar Empty

JPY
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Yen was the worst performer in the G10 FX space, falling nearly 0.90% for Monday's session. USD/JPY tracks near 150.75 in early Tuesday dealings, the pair reached close to 150.90 in terms of intra-session highs late in US trade on Monday. The surge in core yields across EU and US markets weighed on yen. 

  • Technicals for USD/JPY indicate the 50.0% retracement of the Jul 3 - Sep 16 bear leg  (150.76) has now been breached, although we haven't breached this level convincingly. Note the July 35 low rests at 151.94, while on the downside the Oct 10 low is back at 148.30.
  • As is typically the case, the yen faltered amidst a higher core yield backdrop, which was initially led by the EU. Incoming issuance and higher crude prices were cited as factors driving yields, with the data calendar quiet, while Fed speak didn't impact sentiment.
  • The generally soft tone to global equity markets didn't benefit yen against the USD or on crosses. The US VIX index remains sub 20%.
  • The local data calendar is quiet today. Tokyo CPI prints on Friday, while this weekend is the legislative elections, where new PM Ishiba's ruling party is struggling in the polls. 
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Yen was the worst performer in the G10 FX space, falling nearly 0.90% for Monday's session. USD/JPY tracks near 150.75 in early Tuesday dealings, the pair reached close to 150.90 in terms of intra-session highs late in US trade on Monday. The surge in core yields across EU and US markets weighed on yen. 

  • Technicals for USD/JPY indicate the 50.0% retracement of the Jul 3 - Sep 16 bear leg  (150.76) has now been breached, although we haven't breached this level convincingly. Note the July 35 low rests at 151.94, while on the downside the Oct 10 low is back at 148.30.
  • As is typically the case, the yen faltered amidst a higher core yield backdrop, which was initially led by the EU. Incoming issuance and higher crude prices were cited as factors driving yields, with the data calendar quiet, while Fed speak didn't impact sentiment.
  • The generally soft tone to global equity markets didn't benefit yen against the USD or on crosses. The US VIX index remains sub 20%.
  • The local data calendar is quiet today. Tokyo CPI prints on Friday, while this weekend is the legislative elections, where new PM Ishiba's ruling party is struggling in the polls.