USD/JPY Back Close To April Highs

USD/JPY got back close to the 134.00 level late in Friday US trade (tracking in the 133.80/85 region in early dealings today). The yen lost close to 1% for all of Friday's session, the third worst performer in the G10 space (behind AUD and NZD).

• Like elsewhere yen was weighed by the sharp move higher in US yields amid higher consumer inflation expectations and hawkish Fed rhetoric. USD/JPY continues to track yield differentials with the US reasonably closely.
• Whilst moving average studies remain in bear mode for USD/JPY, near term focus could remain on upside momentum. On the upside, clearance of 134.05 would be seen as a bullish development and expose 134.75, a Fibonacci retracement. On the downside, the April 10 low comes in at 131.83.
• The local data calendar is empty today, but domestic focus is likely to rest on fall out from the weekend's attempted assassination of Prime Minister Kishida. A smoke bomb was thrown at him, although he escaped injury. Kishida vowed to step up security measures for when foreign officials visit in light of the attack.
• Finally, the IMF mission chief to Japan stated late last week the BoJ should adopt a neutral bias towards further easing (see this link for more details).