USD/JPY Holds Sub 150.00, Yen Outperforms Broader USD Gains On Haven Flows

Safe havens outperformed through Wednesday trade post the Asia close. CHF finished Wednesday's session modestly higher, while yen ticked down (losing 0.08%). Both currencies outperformed the rest of the G10, particularly higher beta plays and commodity FX. USD/JPY currently sits just below 149.90, just below Wednesday NY highs around 149.95.

• Despite outperforming other majors, USD/JPY maintained a modest upside bias. Dips back towards 149.60 post the Asia close were supported, but upside resistance is still apparent ahead of the 150.00 level.
• Verbal jawboning or actual intervention from the MoF remains a watch point for markets.
• In the cross asset space, equity sentiment was weaker across US and EU markets, while the US TSY curve bear steepened. The 10yr yield reached a fresh high back to 2007, +8bps to 4.915%. Fed speak was hawkish in terms of comments by Waller. We have further Fed speak coming up this morning.
• So, whilst the weaker equity backdrop aided yen on crosses, firmer yields kept USD/JPY dips supported.
• Locally, we have September trade figures today, along with weekly investment flow data.
• An ex BoJ board member noted the central bank may end negative yields by end 2023 (see this BBG link).