USD/JPY Drifts Higher But Doesn't Test Cyclical Highs, BoJ Speak On Tap Today

USD/JPY stuck to recent ranges as we progressed through the Tuesday session. Through NY trade we gravitated higher to 151.60 and we track close to this level in early Wednesday dealings. Lows From Tuesday were near 151.20. Yen lost just under 0.10% for Tuesday's session, amid mostly broader G10 gains against the USD (CHF was the weakest performer down just over 0.50%).

• Cross asset signals for the yen had US yields finish lower, but we remain within recent ranges. The 10yr near 4.23%, while the 2yr is around 4.59%. The general bias around US-JP yield differentials has been less upside support for USD/JPY in recent sessions.
• US data was mixed as US durable goods data was stronger than expected, while the Richmond Fed index weaker. US equities were lower, while EU markets were higher.
• Technical focus for USD/JPY remains on upside resistance. Sights are on 151.91 and 151.95, the Nov 13 high and Oct 1 ‘22 highs respectively. A break of this resistance would confirm a resumption of the long-term uptrend and open 152.66, a Fibonacci projection. Initial firm support is 149.84, the 20-day EMA.
• The local data calendar has BoJ board member Tamura speaking at 10am local time today. In the option expiry space note following for NY cut later: Y150.00($2.0bln), Y151.50-70($1.2bln), Y152.00($665mln).