USD/JPY Through 140.00, May Tokyo CPI On Tap Today

USD/JPY sits just below late NY session highs (140.20/25), with the pair just above 140.00 currently. Yen lost just over 0.40% for Thursday's session, around mid-range from a G10 standpoint, as broad USD gains continued. Support for the USD came from higher yields, amid better data outcomes and debt ceiling optimism. US-JP yield differentials continue to trend higher.

• Sights are set on key resistance at 140.66, the top of a bull channel drawn from the Jan 16 low. 141.61 is the Nov 23 2022 high. On the downside, initial support lies at 137.77, the May 2 high. A short-term pullback would be considered corrective in technical terms.
• In comments late yesterday, BoJ Governor stated that the central bank isn't targeting wages growth, but that reaching the 2% inflation goal in a sustainable manner is key.
• The government also raised its monthly economic assessment in May, for the first time in 10 months, as production, exports and consumption all improved.
• Today the focus rests on May CPI prints for Tokyo CPI. The market expects the headline y/y pace to ease to 3.4% from 3.5%. The core measure (ex fresh-food) is also expected at 3.4% (from 3.5%), while core-core (excluding energy as well), is forecast at 3.9% y/y, versus 3.8% prior). PPI services for Apr are also due, 1.4% is the forecast, prior was 1.6%.