USD/JPY Back Sub 157.00, Busy Data Day Headlined By Tokyo CPI, BoJ Bond Ops

USD/JPY reached lows just under 156.40 in offshore Thursday trade. We sit slightly higher in early Friday dealings (last 156.75/80), after posting a 0.50% gain for Thursday's session. Yen was the third best performer in the G10 space for the session (behind CHF and SEK). The BBDXY fell 0.23%, amid broad USD weakness, as US yields fell from recent highs.

• Slightly weaker US data in terms of initial jobless claims and softer detail in Q1 GDP revisions, weighed on US yields (benchmark Tsys off 5-7bps). Some Fed speak from Bostic also lent dovish.
• This backdrop, coupled with further weakness in US equities, helped drive USD/JPY lower. Also, as a reminder, Credit Agricole see equity market moves as suggesting month-end portfolio-rebalancing flows are likely to be moderate USD selling across the board, with the strongest sell signal in the case of USD/JPY.
• Little has changed from a broader technical backdrop standpoint though. Recently, resistance at 156.74, the May 14 high and 157.00, 61.8% of the Apr 29 - May 3 sell-off, has been breached. A continuation higher would open 157.99, the May 1 high. For bears, a stronger reversal would again refocus attention on 154.39, the 50-day EMA, and 153.45, trendline support drawn from the Dec 28 low.
• Today's data calendar is busy, with April job less figures, along with May Tokyo CPI. The market expects CPI to recover from the April dip (headline to 2.2% y/y, from 1.8%). Also out is IP, retail sales and later on housing starts. Note as well BoJ bond buying ops are on tap.
• In the option expiry space note the following for NY cut later: Y155.00($584mln), Y156.00-05($613mln), Y156.75-80($750mln), Y157.00-10($850mln), Y158.00($891mln).