USD/JPY Firms Above 157.00, But Yen Outperforms Most G10 On Equity Pullback

USD/JPY sits just off late US session highs from Wednesday trade (just above 157.70), the pair tracking near 157.60 in early Thursday dealings. The yen lost 0.30% for Wednesday's session, amid further broad based gains for the USD. The BBDXY rose nearly 0.50%, although the yen was the second best performer in the G10 space on a relative value basis (CHF fell less than 0.10%).

• USD gains were supported by a further rise in US yields, as the curve steepened (10yr cash Tsy yield to 4.61%). This followed another poor auction result
• Equity sentiment was also weaker across EU and US markets (SPX down 0.74%), which likely aided yen outperformance against higher beta crosses. AUD/JPY sits back at 104.15/20, against recent highs of 104.87.
• For USD/JPY, focus remains on upside pressures. This leaves 158.21 as the next resistance, marking the 76.4% retracement for the intervention leg off the 160.17 multi-year high. The 20-day EMA is back around 156.10.
• On the local data calendar today we have weekly offshore investment flows.
• Also note the busy FX option expiry pipeline ahead for NY cut later: Y155.00($2.2bln), Y155.90-10($5.6bln), Y157.00($706mln), Y158.00($624mln), Y158.50($1.5bln), Y159.35($808mln), Y160.00($834mln).