USD Marginally Firmer, USD/JPY Higher As BoJ Holds Steady

The BBDXY saw support in the first part of trade on moves towards the 1220 level. We got above 1222, but last tracked near 1221.70, only +0.10% on NY closing levels from Thursday. Some support has emerged from the firmer US yield backdrop (+1.4-3.4bps higher), but outside of yen, moves have been marginal.

• USD/JPY has seen the greatest degree of volatility, dipping to 139.85 pre BoJ, but ultimately rebounding as the central bank left policy settings unchanged. We currently track close to session highs in the 140.60/65 region, +0.25%.
• The BOJ stated FX markets will need to be monitored, which may be a topic of Ueda's press conference later, as FinMin Suzuki also gave some verbal jawboning this morning.
• Ranges have been relatively tight elsewhere, albeit with modest USD support. EUR/USD sits back at 1.0940.
• AUD/USD is at 0.6875/80, slightly down from Thursday session highs, while NZD tracks around the 0.6230 level.
• Looking ahead, the European morning's focus will be the final, detailed Eurozone readings of CPI, along with several ECB speakers including Holzmann, Rehn, Muller, Centeno, and Villeroy. For the US side, we have Fed speakers, Bullard speaking early, then Waller and Barkin, later on. U. of Mich Sentiment also prints.