USD/JPY Happy To Consolidate

The post-Fed cheapening for the longer end of the U.S. Tsy curve, coupled with modest richening for JGBs, has underscored Wednesday's uptick in USD/JPY after Tokyo returned from a mid-week holiday. That leaves the cross ~20 pips higher on the day, just shy of Y114.20 into London trade.

• Comments made after a Thursday meeting between Japanese PM Kishida & BoJ Governor Kuroda failed to unearth any new information.
• Looking ahead, fallout from today's BoE decision will be eyed when it comes to the broader risk backdrop, with Friday's U.S. NFP print providing another potential major catalyst ahead of the weekend.
• Our technical analyst notes that USD/JPY remains in consolidation mode. Attention is on the 20-day EMA (Y113.42) and the Oct 12 low (Y113.00). A break of this support zone would signal scope for a deeper pullback and open the way to the Sep 30 high/recent breakout level (Y112.08). Any deeper short-term sell-off though would be considered corrective. Primary trend conditions remain bullish and the trigger for a resumption of the uptrend is seen at the Oct 20 high (Y114.70).