USD/JPY In Familiar Ranges, EUR/JPY Pulls Back

USD/JPY tracked familiar ranges post the Asia close. Lows were near 145.50, while the pair couldn't sustain moves above 146.00. We currently track near 145.85, with yen up 0.23% for Tuesday's session. This left the currency towards the upper end of G10 performers against the USD, although overall moves were fairly muted.

• In terms of technicals, the uptrend in USDJPY remains intact and short-term pullbacks are considered corrective. MA studies are in a bull mode condition, highlighting an uptrend. The focus is on 147.49, a Fibonacci projection. Initial firm support is 143.99, the 20-day EMA.
• EUR/JPY pulled back, which was notable, after the cross touched 159.49, the highest rate since Sept'08. The moves strengthen the importance of resistance layered in the cross at 159.21-49. A break and close above these levels is needed to resume the underlying bull trend. We last tracked near 158.20.
• The US yield backdrop was mixed for Tuesday's session, with the 10yr unable to move beyond 4.35% (closing at 4.324%), but the 2yr closing near fresh highs at 5.045%. US data didn't shift the sentiment needle.
• On the data front today we have the August preliminary Jibun Bank PMI prints. There is no consensus, but manufacturing was 49.6 prior, services 53.8.
• PM Kishida has also called for a discussion of economic steps next month after ordering the ruling party to present options for fuel/gasoline price relief by the end of this month (see this link).