USD/JPY Holding Below 142.00, Yen Crosses Off Recent Highs

USD/JPY was relatively quiet post the Asia close on Monday, with the pair in a rough 141.70/142.00 range. US markets were out, so this likely impacted moves to a degree. Broader USD sentiment was positive for the Monday session (BBDXY +0.20%), although yen outperformed at the margins. We last tracked in the 141.90/95 region.

• Near-term focus is likely to rest on whether we can break above 142.00 and if this evokes a response from the Japan authorities. The break of the top of the bull channel (from Jan 16) reinforces bullish conditions. The focus is on 142.25 next, the Nov 21 2022 high. On the downside, support to watch is at 139.42, the 20-day EMA. A break is required to signal a short-term top.
• Cross asset signals were limited with US markets out, although the tone to equities was generally softer (in EU markets), while commodity prices were mostly weaker as well. These moves likely aided yen outperformance at the margins, with AUD/JPY and NZD/JPY down from recent highs.
• The local data calendar has final Apr industrial production readings, along with Apr capacity utilization out. The final May machine tool orders print is also due.