USD/JPY Dips Supported, Consolidates Above 153.00 Amid Higher US Yields/Equities

USD/JPY printed marginally higher levels post the Asia close on Thursday. We got just above 153.30, while dips to 152.80 were supported. We track near 153.20/25 in early Friday dealings, after the yen lost just under 0.10% for Thursday's session. Yen was among the weakest performers in the G10 space, although marginally outperformed EUR.

• Broadly bullish conditions remain in play for USD/JPY, following Wednesday's break above 152.00 (after the US CPI print). We see continued rhetoric from the authorities around FX, but USD/JPY dips remain supported.
• The upside focus for USD/JPY remains on Fibonacci projection levels, 153.39 and 153.98 respectively. On the downside the 20-day EMA is near 151.20.
• The US PPI print from Thursday suggests the Fed’s preferred core PCE reading will give a softer signal on inflation, still we had US yields climb at the back end. The 10yr rose a further 4bps to 4.59%, which should help keep US-JP yield differentials elevated.
• The local data calendar has Feb F IP on tap, as well as capacity utilization.
• In the option expiry space, note the following for NY cut later today: Y149.00-13($1.2bln), Y149.50($1.9bln), Y150.00($1.0bln), Y151.00($927mln), Y152.00($1.0bln), Y152.70-80($1.4bln), Y153.35($520mln).