USD/JPY Dips As US Tsys Futures Spike

USD/JPY fell during NY trade. From close to 149.20 we got close to 148.40 late in the session. We finished near 148.50, which is where we currently track, a yen gain of 0.54% for Monday. The yen was the third best performer in the G10 space, amid a mostly negative USD backdrop. (The BBDXY fell 0.14%).

• In terms of technicals, we remain above last Tuesday's low of 147.43, which is a key watch point on the downside. A break back above 150.00 is needed to re-establish bullish conditions.
• In a holiday impacted US session, with bond markets shut, but equities open, Fed speak dominated. Rising yields on long-dated U.S. bonds should factor into policymakers’ deliberations about whether to tighten monetary policy further, Fed Vice Chair Philip Jefferson said Monday.
• US 10yr futures spiked higher during NY trade (TYZ3 getting close to 108), which weighed on USD/JPY and USD sentiment more broadly (although EUR was a noticeable underperformer).
• Locally, Japan markets return from yesterday's holiday. We have August trade and current account balance data first up. later on, the September Eco Watchers Survey is due.