USD/JPY Tracks Recent Ranges, Second Tier Data On Tap Today

Tuesday session lows for USD/JPY were marked late in the Asia Pac session, around the 139.10 level. We climbed back to 140.00 by NY trade, before settling back into the 139.60/70 region by the close, which is where we currently track. This left yen basically unchanged for the session, with broader USD trends finding some support within the G10 space (albeit not against the AUD post RBA).

• Firmer USD/JPY levels coincided with the US 2yr yield climbing (closed at 4.48%), but back end US yields ended lower, the 10yr back to 3.66% (after getting as high as 3.73%).
• The US data calendar was quiet, but the NY Fed’s global supply chain pressure index (GSCPI) fell to a record low at -1.71 standard deviations below average in May for a series starting 1997, continuing its sharp decline from intense supply side challenges of 2H21/1H22.This suggests less goods US inflation pressure.
• The local data calendar has the Apr preliminary leading and coincident indices. The market consensus for the leading index is 98.2 (prior 97.7), for the coincident index it is 99 versus 98.8 prior. These releases are unlikely to move market sentiment.
• The local authorities released revised plans for its chip strategy late yesterday, aiming to triple sales of domestically produced semiconductors to $108bn by 2030 (see this link).