USD/JPY Recovers, But Yen Outperforms On Crosses

JPY outperformed within the G10 space, the only currency to record gains against the USD for Monday's session. The pair got to around the 137.50 level late in Asia trading/early London, which is fresh lows back to late August. We steadily recovered through NY trading though and currently track around the 138.90 level, +1% from the early London session lows.

• Aiding the USD/JPY recovery was higher US yields, amidst generally hawkish Fed rhetoric. Yields pushed up from there late Asian session lows, although more so in the back end (US 10yr back to 3.68%). Real yields were also higher, 10yr back to 1.43%, from 1.36% at the end of last week.
• Cross asset signals in the equity space likely helped yen, although this was more evident on crosses, with risk aversion evident as global equities were weaker across the board. The US VIX index rose back above 22% (from 20.50% at the end of last week). AUD/JPY (last 92.35/40) and EUR/JPY (last 143.65) start today close to lows from late yesterday in the Asia session.
• Today the local data calendar has the October jobless rate (2.5% forecast against 2.6% last month) and October retail sales due (+5.1% y/y forecast against a revised +4.8% last month).