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USD/JPY Breaks Above 157.00, April National CPI On Tap Today

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USD/JPY tracks near 157.00 in early Friday dealings. We got to fresh highs of 157.20 post stronger US data (led by the services PMI), albeit with choppy price action on the break above the 157.00 level. Yen lost less than 0.10% for Thursday's session.

  • While the firmer US yield backdrop (4.4-6.7bps higher across the benchmarks) aided USD/JPY, the yen received some benefit as US equity sentiment softened.
  • We saw a sharp pull back in the SPX after making fresh highs at the open, closing down 0.74%.
  • For USD/JPY, beyond the overnight high (157.20) we have May 1 highs at 157.99 as the upside focus point. The 20-day EMA continues to trend higher, last near 155.56. The 50-day is further south around 154.02.
  • Locally today most focus will be on the national April CPI print. The market expects a 2.4% y/y headline (2.7% prior). Core ex fresh food is expected at 2.2%y/y (prior 2.6%).
  • BoJ Governor Ueda stated late yesterday that the weaker GDP growth backdrop is unlikely to impact the policy outlook given a rebound is expected (see this BBG link).
  • US Treasury Secretary Yellen reiterated that currency intervention should be rare and well flagged (see this link).
  • Finally, note the following option expiries for NY cut later: Y155.50($1.1bln), Y156.00($1.1bln), Y157.00($2.8bln), Y157.25-33($1.1bln).
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USD/JPY tracks near 157.00 in early Friday dealings. We got to fresh highs of 157.20 post stronger US data (led by the services PMI), albeit with choppy price action on the break above the 157.00 level. Yen lost less than 0.10% for Thursday's session.

  • While the firmer US yield backdrop (4.4-6.7bps higher across the benchmarks) aided USD/JPY, the yen received some benefit as US equity sentiment softened.
  • We saw a sharp pull back in the SPX after making fresh highs at the open, closing down 0.74%.
  • For USD/JPY, beyond the overnight high (157.20) we have May 1 highs at 157.99 as the upside focus point. The 20-day EMA continues to trend higher, last near 155.56. The 50-day is further south around 154.02.
  • Locally today most focus will be on the national April CPI print. The market expects a 2.4% y/y headline (2.7% prior). Core ex fresh food is expected at 2.2%y/y (prior 2.6%).
  • BoJ Governor Ueda stated late yesterday that the weaker GDP growth backdrop is unlikely to impact the policy outlook given a rebound is expected (see this BBG link).
  • US Treasury Secretary Yellen reiterated that currency intervention should be rare and well flagged (see this link).
  • Finally, note the following option expiries for NY cut later: Y155.50($1.1bln), Y156.00($1.1bln), Y157.00($2.8bln), Y157.25-33($1.1bln).