Yen Loses Nearly 1%, EUR/JPY At Fresh Multi Week Highs

USD/JPY climbed to 144.85 by the NY session on Thursday, before paring gains. Dips back to 144.50 were supported and we track near 144.60 in early Friday trade, having lost 0.9% for Thursday's session.

• On the topside for the pair, the 50-day EMA comes in at 145.31, with gains up until this point considered corrective. 146.59, the Dec 11 high is a key short term resistance point. The 20-day EMA sits back around 143.37.
• Yen losses were underpinned by the continued recovery in US yields. The 10yr pushing back to 4%, as labor market indicators were stronger than expected. This comes ahead of tonight's NFP report. Yesterday's benign JGB return for 2024, leaves US yield shifts the key driver of US-JP yield differentials. The 10yr spread is back above +335bps.
• EUR/JPY got back above 158.50 and is back above all key EMAs. This was fresh highs in the pair back to the first half of Dec.
• In the option expiry space, note the following for NY cut later: Y142.00-15($524mln), Y143.00($522mln), Y143.80-00($531mln)
• On the data calendar today, we have the Dec monetary base, Dec PMI revisions (services) and later on the consumer confidence print.