USD/JPY Rebound Continues, Tests 200-day EMA Resistance

Yen was an underperformer through Wednesday's session. The pair got as highs as 143.73, right on the 200-day EMA. We sit back at 143.25/30 in early Thursday trade, having lost ~0.90% for the Wednesday session. We do track above the simple 200-day MA (143.18).

• Yesterday's lows were just under 141.90, while late Dec 2023 lows were at 140.25.
• Yen only received marginal benefit from the late pull back in US yields in NY trade on Wednesday. Wednesday's gain in USD/JPY looks a little elevated relative to yield differential trends.
• The yen was also the worst performer in the G10 space, despite risk aversion in global equity indices. Japan markets return today for their first trading day of 2024 after the new year holiday break.
• We do have the final Dec manufacturing PMI print, but this is unlikely to move sentiment.
• Note current spot levels are close to reasonable option expiries for NY cut later today: Y143.25($705mln), Y143.85-00($1.8bln), Y145.00($740mln) and as high as Y146.50-60($1.3bln).
• Finally, several local media stories highlighted planned wage rises for some companies this year, which were announced at the end of 2023 see this link and here as well. Final link here.