Yen Can't Sustain 134 Handle, But Still Third Best G10 Performer

Yen was the third best performer in the G10 space through Tuesday's session, trailing only AUD and NOK. USD/JPY sits at 135.60/65 currently, down a little over 1.5% for the past 24 hours, although post US CPI lows came in at 134.66. The yen followed US cash Tsy 10yr yields closely through the course of NY trading.

• On the downside, the bear trigger is unchanged at 133.63 (Dec 2 low). A break would resume the technical downtrend. Recent highs close to 138.00 should offer resistance on the topside.
• Outside of the fallout from the weaker US CPI print, Japan data is also on tap today. Core machinery orders for October are forecast at +1.8% m/m, versus -4.6% prior.
• The Q4 Tankan survey is also due, with softer conditions expected in the manufacturing space (6 outlook expected, versus 9 previously for large firms), while non-manufacturing is expected to improve (+15 outlook versus +11 for large firms).