USD/JPY Hovering Around Late NY Levels

Little to note in USD/JPY as Tokyo returns from its 4-day weekend, with the cross dealing little changed around the Y115.35 mark. To recap, the cross ticked lower in Monday’s early European dealing after rallying in Asia, with participants perhaps a little worried re: the latest round of China Evergrande negativity. Some light pressure in e-minis applied further weight to the cross, before a deepening of the uptick in Tsy yields and a recovery rally for U.S. equities allowed the rate to garner bid and print session highs (Y115.37) during the NY morning, consolidating thereafter.

• The Nov 24 high/bull trigger (Y115.52) remains pivotal, while initial support is located at the 20-day EMA
• There isn’t much in the way of tier 1 risk events slated until Tuesday’s U.S. ISM manufacturing survey, given the recent lack of market reaction when it comes to recent Chinese Caixin PMI releases.