Underperforms, As Core Yield Surge Reinforces BoJ's Outlier Status, CPI Out Today

Yen was the weakest link in the G10 space, losing 0.86% against the USD for Thursday's session. USD/JPY got above 143.20 late in NY trade, fresh highs back to November last year. We sit slightly lower now, around 143.05 currently. The surge in core yields amid hawkish central bank surprises in the UK and Norway, left the BoJ's still accommodative stance as a key source of JPY weakness.

• In terms of technicals, up next on the topside for USDJPY is 143.77, the 2.0% 10-dma envelope. Up next on the topside for USDJPY is 143.77, the 2.0% 10-dma envelope.
• CHF/JPY got to a fresh record high, currently tracking just shy of 160.00, as the Swiss central bank raised interest rates yesterday.
• JGB yields remain within recent ranges, as BoJ board members have struck a tone this week that has pushed back against a YCC tweak in July.
• Today we get May National CPI prints. The market expects headline to ease to 3.2% y/y, from 3.5%. The ex fresh-food measure is expected at 3.1% y/y from 3.4%, but the core measure (ex fresh-food and energy) is forecast to nudge higher to 4.2% y/y from 4.1%.
• Also out is the Jibun June preliminary PMIs, then later on is May department store sales.