USD/JPY Pulls Back With US Yields, But Underperforms NOK & AUD Bounce

Yen recovered post the Asia close on Monday. After getting to fresh highs around the 133.75/80 region, which came at the time of the London/EU cross over, we pulled back to 132.20 by the NY session. We sit slightly higher now at 132.40/45. The yen benefited from a broadly softer USD backdrop, which reversed Asia Pac gains through London and NY trading, while lower US yields also helped.

• Yen was one the weaker performers in the G10 though, rising only 0.30% against the USD. NOK (+1.7%) and AUD (+1.5%) were the stand outs.
• The trend direction in USD/JPY still appears skewed to the downside from a technical standpoint. The 50-day EMA level at 133.34 has been breached, but a break through couldn't be sustained. On the downside, outside of NY session lows from Monday, the 130.76 low from March 29 is another potential support point.
• USD/JPY followed the trajectory of US yields, which finished down (the 2yr back to 3.96%, versus highs of 4.135%). The weaker than expected ISM print offset the rise in oil prices from a yield standpoint.
• The local calendar just has monetary base figures on tap today for March, which is unlikely to be a market mover.