USD/JPY Back Close To Session Highs, Official Rhetoric Continues On FX

The USD has clawed back some of Thursday losses, last tracking near 1254.55, up from earlier lows around 1252. Intra-session lows from Thursday were just under 1250. Yen volatility has dominated the first part of trade.

• USD/JPY had an earlier low of 157.76, after recording earlier highs of 159.45. We last tracked near session highs, the pair close to 159.30. We have had a host of comments from Japan officials, with FX Chief Kanda speaking first, along with Chief Cabinet Secretary Hayashi and finally FinMin Suzuki.
• The comments were largely in line with on-going FX rhetoric around excessive FX moves, which are one-sided, and a desire for FX moves to be stable and to reflect fundamentals. Officials wouldn't comment on whether intervention had take place through Thursday's US session.
• They also wouldn't comment on local media reports of a EUR/JPY rate check earlier today, which may have helped drive the earlier pull back to 157.76.
• Elsewhere, NZD/USD is lower, last near 0.6085, off around 0.15%. Earlier data showed a slump in the manufacturing PMI fueling further economic concerns. The AUD/NZD cross hit fresh highs of 1.1118, but sits clear to 1.1100 in latest dealings. AUD/USD is little changed, last near 0.6760.
• In the cross asset space, outside of HK equity market gains, most regional equity markets have struggled for positive traction. US yields are up between 1-2bps, so may be lending some USD support at the margins.
• Looking ahead we still have China June trade figures to come.