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Underperforms Broader USD Weakness, Tracks Sub 156.00

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USD/JPY tracked familiar ranges post the Asia close on Friday. We couldn't breach the 156.00 level on the topside, while a dip to 155.25 was supported. We track near 155.65 in early Monday dealings. The yen lost 0.17% for Friday's session, underperforming the rest of the G10, except for CHF.

  • For last week yen was only marginally higher against the USD, against a softer USD backdrop more broadly. The BBDXY fell nearly 0.70% last week.
  • For Friday's US session we had US yields finishing higher, as Fed speak reiterated the need to keep rates restrictive in order to bring inflation down. The 10yr yield rose 4.5bps to 4.42%, likely applying some pressure to the yen.
  • Equity sentiment was mixed, with the SPX up a touch in US trade, but most EU markets finished lower.
  • Yen positioning remained skewed short based off CFTC data, albeit pared from recent extremes (-126k).
  • For USD/JPY technically, upside focus rests at 156.74, the May 14 highs. The 50-day EMA is back at 153.36. The 20-day is around 155.07.
  • Today's local data calendar has the March tertiary industry index on tap. In the option expiry space, note the following for NY cut later: Y154.00($1.2bln), Y155.00($584mln), Y156.45-50($1.4bln).
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USD/JPY tracked familiar ranges post the Asia close on Friday. We couldn't breach the 156.00 level on the topside, while a dip to 155.25 was supported. We track near 155.65 in early Monday dealings. The yen lost 0.17% for Friday's session, underperforming the rest of the G10, except for CHF.

  • For last week yen was only marginally higher against the USD, against a softer USD backdrop more broadly. The BBDXY fell nearly 0.70% last week.
  • For Friday's US session we had US yields finishing higher, as Fed speak reiterated the need to keep rates restrictive in order to bring inflation down. The 10yr yield rose 4.5bps to 4.42%, likely applying some pressure to the yen.
  • Equity sentiment was mixed, with the SPX up a touch in US trade, but most EU markets finished lower.
  • Yen positioning remained skewed short based off CFTC data, albeit pared from recent extremes (-126k).
  • For USD/JPY technically, upside focus rests at 156.74, the May 14 highs. The 50-day EMA is back at 153.36. The 20-day is around 155.07.
  • Today's local data calendar has the March tertiary industry index on tap. In the option expiry space, note the following for NY cut later: Y154.00($1.2bln), Y155.00($584mln), Y156.45-50($1.4bln).