USD/JPY Makes Fresh Highs For The Week Before Retracing

USD/JPY currently sits slightly down from session highs (132.70), last near 132.50/55. This earlier high was slightly above Monday's 132.65 high, but we sit well below highs from the end of last week around 133.80. US yields are unwinding some of their gains from Tuesday's session, with -1.8 to -4.0bps moves across the curve, led by the 2yr at the front end.

• Japan equities have opened higher, but part of this reflects catch up after markets were closed yesterday. The Topix was last around ~1.75% higher.
• The authorities have also announced details around combatting inflation pressures as part of a 2 trillion-yen plan. This includes cash pay outs to low income households and subsidies for household electricity bills. Onshore media were reporting about the plan on Monday, so this won't necessarily come as a surprise to the market.
• Later on the final Feb machine tool order print is due, prior was -10.7%y/y.