USD/JPY Pulls Back Sharply After Printing Fresh Highs, Tokyo CPI out Today

USD/JPY was volatile late in Asia Pac trade on Thursday. The pair got to fresh highs near 150.80, before pulling back sharply to just under 150.00. From there we consolidated for the rest of the session. Moves up to 150.50 drew selling interest but pullbacks were fairly shallow. We last tracked near 150.40, with yen having lost 0.11% for Thursday's session.

• Thursday's price action will increase focus on the October 31st BoJ reserves release, at which markets will gain official confirmation of any market intervention.
• Yen benefited from the pull back in US yields, although USD/JPY didn't see as much downside as might have been expected given the 10yr yield is back to 4.85%. US data was mixed, with Q3 headline GDP beating estimates, but initial jobless claims ticked higher.
• Despite further equity weakness in the major global indices, yen marginally underperformed against AUD and NZD.
• Locally today we have October Tokyo CPI out. The market expects very similar outcomes to September (+2.8% y/y headline, 2.5%y/y ex fresh food and 3.7%y/y ex fresh food and energy).