USD/JPY Consolidates Post Upside Breach Of 156.00, BoJ Speech Today

After breaching above 156.00 late in Asia Pac trade on Wednesday, USD/JPY spent the remainder of the session largely wedged between 156.00-156.50. We track near 156.00 in early Thursday dealings. Yen lost nearly 0.80% for Wednesday's session, the worst performer in the G10 space and unwinding all of Tuesday's gains.

• A more positive equity backdrop across EU and US markets weighed on safe haven FX in Wednesday trade (CHF fell 0.37%). The SPX rose 1.18%.
• US data was mixed with ADP jobs lower than forecast but the ISM Services print firmer than expectations. US yields finished around 5bps lower across the key benchmarks. The 10yr nominal yield back to 4.275%. US-JP yield differentials remain skewed lower.
• For USD/JPY techs, a move above 157.71, the May 29 high, is required to resume a short-term uptrend. Tuesday's intra-session breach of the 50-day EMA (154.66) proved fleeting and the strong subsequent bounce keeps this key support zone intact for now.
• Locally on the data calendar today we have weekly investment flows, along with Tokyo office vacancies for May. Also note BoJ board member Nakamura speaks in Sapporo.
• In the FX option expiry space note the following for NY cut later: Y155.15($1.3bln), Y155.45-50($2.4bln), Y157.00($1.5bln), Y157.50($732mln), Y157.85-00($1.6bln), Y158.50($1.1bln).