USD/JPY Just Below Friday Highs Above 141.00

USD/JPY remained supported on dips post the Asia close on Friday. The pair couldn't sustain moves back sub 139.00 and ended near session highs above 141.00. We track slightly lower in the first part of dealing today (last around 141.05/10), but yen lost 1.19% on Friday, the worst performer in the G10 space, amid a mixed broader USD backdrop.

• In terms of technicals, a move above 141.96 (the July 21 high) is needed to re-establish the bullish theme. Support on the downside is likely around Friday lows at 138.07, while key support at the July 14 low is eyed at 137.25.
• BoJ Governor Ueda stressed that Friday's shift on YCC, allowing the 10yr government bond yield to trade as high as 1.00%, albeit with a long term target still at 0%, wasn't a shift away from easy policy settings.
• “The BOJ is still some distance away from removing its negative short-term policy interest rate,” Ueda told reporters after the two-day meeting. “Sustainable and stable achievement of the price stability target of 2%, accompanied by wage increases, has not yet come in sight.”
• Japan 10yr government bond yields finished Friday slightly below session highs (0.568%), while US-JP 10yr swap spreads slumped by ~15bps but remain above recent lows.
• Today on the data front we have June retail sales and IP growth, later on housing starts and consumer confidence are due.