USD/JPY Back Sub Pre BoJ Levels, CPI & BoJ Oct Policy Mins Out Today

USD/JPY's pull back continued post the Asia close on Thursday. By late NY trade we were close to 142.00, which is back sub pre BoJ levels from earlier this week. The pair currently tracks slightly higher (142.25), after yen rose just over 1% for Thursday's session, the second best performer in the G10 space (BBDXY down 0.60%).

• Yen was only bettered in the G10 space by AUD, despite a recovery in US equity sentiment (SPX +1%).
• US yields also recovered from intra-session lows, which came post downward Q3 GDP revisions (10yr Tsy yield finished at 3.89, +4bps). Again though, this didn't shift USD/JPY sentiment much.
• US-JP 10yr yield differentials have recovered further from recent lows but Japan yields are also up from recent lows (10yr JGB at 0.583% yesterday and back above its simple 200-day MA).
• On the data front today we have the Nov National CPI out. The market expects +2.8% y/y, versus 3.3% prior for headline, ex fresh food is projected at 2.5% y/y (prior), while ex fresh food and energy is forecast at 3.8% y/y (prior 4.0%).
• Also note the BoJ Minutes from the Oct policy meeting are out today.