USD/JPY Firms, But Yen Outperform EUR

USD/JPY lows for Tuesday were seen late in the Asia Pac session, with the pair getting down to the low 149.30 region. From there though we mostly recovered, getting back to 149.90/95 by the NY session. We sit slightly lower in early Wednesday dealings, last near 149.85. The yen lost -0.13% for the session, outperforming stronger USD gains seen elsewhere (BBDXY +0.31%).

• Tuesday's dip in USD/JPY pulled up short of the 20-day EMA (149.21). Upside attention remains on a break above 150.00, with the Oct 3 high (150.16) in focus, while 150.40 is a Fibonacci projection.
• Broader USD sentiment was aided by higher front-end yields, the softer Euro following the weaker-than-expected PMIs and the divergent above-estimate US PMI figures. US 2yr rose to 5.11%, +6.4bps, although the back end dipped slightly (10yr to 4.82% -2.7bps).
• EUR/JPY moved away from recent highs near 160.00, the pair last tracking near 158.80.
• On the data front today, we just have the final August leading and coincident indices, which are unlikely to move sentiment.
• Bloomberg noted that any decision to tweak YCC by the BoJ at next week's policy meeting is likely to go down to the wire (see this link for more details).