USD/JPY Modestly Off Highs, As FinMin States Watching FX Trends Closely

USD/JPY is down from session highs, last near 142.70. Finance Minister Suzuki has stated that it is desirable for FX markets to move stably and that they reflect fundamentals. He also stated FX trends will be closely monitored. Earlier highs in the pair came close 142.80. We still sit 0.30% weaker in yen terms versus Monday closing levels. 142.98, the top of a bull channel drawn from the Jan 26 low isn't too far away. Beyond that is 143.22, a retracement level of the Jun 30- Jul 14 downleg, then the July 7 high at 144.20.

• Earlier comments from Japan Economic Minister Goto indicated that BoJ's recent YCC shift was meant to increase the sustainability of monetary easing and should not be seen as a shift in the easing stance.
• Broader USD trends are mostly positive, although yen is the weaker performer in the G10 FX space.
• US yields are relatively steady, but the equity tone is mostly a positive one in terms of regional performers and US futures.