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USD/JPY Gets Close To Friday Session Highs Before Sellin Interest Emerges

JPY

USD/JPY has rebounded from earlier lows, last tracking in the 134.35/40 region, slightly off session highs of 134.47. This was close to NY session highs from Friday near 134.50 (after the US PMI beats). Earlier lows were at 133.89, so a good +50pip recovery in the pair.

  • The cross-asset backdrop has been yen supportive at the margins, but this appears to have been dominated by the firmer USD backdrop. The BBDXY is +0.1%, last near 1226.35.
  • US yields are lower, as are US equity futures, while the regional equity backdrop is negative in parts.
  • We have seen a number of headlines from new BoJ Governor Ueda, as he spoke in parliament. None have shifted sentiment meaningfully, with the governor noting the 6 month, 1yr, 1.5yr inflation outlooks must be close to 2% for the BoJ to consider tweaking YCC.

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