Yen Loses 1.7% On Tuesday, Comfortably Worst G10 Performer

Yen losses extended post the Asia close on Tuesday. USD/JPY got above 151.70 in NY trade. We track near 151.60 in early Wednesday Asia Pac trade. The yen was 1.70% weaker for Tuesday's session, as we saw continued fallout from yesterday's dovish BoJ YCC tweak. The yen was comfortably the worst performer in the G10 space for the session.

• The market was left disappointed by the BoJ, particularly after Nikkei reports from Monday suggested a higher cap on yields could be introduced. The relaxation in the upper limit will not drive a large spike in yields, with BoJ Governor Ueda insisting that a rise much above 1% is unlikely (see the MNI Policy team's wrap here).
• Coupled with the fact that MOF data showed no FX intervention in October, gave a green light for yen bears. Tuesday highs were just short of 2022 highs (151.95).
• Beyond 2022 highs, we have 152.20 and 153.52 as the next resistance points, both Fibonacci projections. On the downside, firm support lies at the 50-day EMA, at 148.02.
• Locally today we have the Oct final Jibun Bank PMI manufacturing read. The initial reading came in at 48.5.