USD/JPY Gets Close To 140.00 Before Rebounding, Jobless Data On Tap Today

Like elsewhere, USD/JPY ranges were reasonably tight post the Asia close. We did see a modest drift lower in the pair, which was a continuation of the Asia Pac trend. The pair got to lows in the 140.10/15 region, before moving back above 140.40 by the end of the Monday session. A modest US Treasury futures bid likely aided yen moves.

• Recall, yesterday's fresh highs in USD/JPY (just above 140.90) coincided with early weakness in US Treasury futures post the weekend debt ceiling deal. However, this wasn't sustained.
• Today on the data front we have the Apr jobless data, along with the job-to-applicant ratio. The jobless rate is forecast to tick down to 2.7%, from 2.8% prior, while the job-to-applicant ratio is expected to remain steady at 1.32.
• In the risk reversal space, we continue to drift sideways in terms of the 1 month, last around -1.53. Implied 1 month vols are slightly down on recent highs, last at 10.825%.
• The BOJ reported record net income last fiscal year (end March), owing to rising income from its government bond holdings and foreign currency deposits (see this link). The size of BoJ's balance sheet has been a focus point in terms of sustainability around its bond buying program.