Yen Outperforms On Equity Risk Off

Yen outperformed broader USD gains, rising nearly 0.20% against the USD for Wednesday's session. The pair sits near 143.50/55 in early Thursday trade, after tracking near 144.00 before the equity rout drove yen crosses lower. Broader USD/JPY ranges have stayed intact though.

• The Dec 19 low is back at 142.25, while recent highs rest near 145.00 on the topside.
• US-JP yield differentials ticked lower, but the 10yr spread remains above recent lows (+320bps). The US 10yr yield dipped 8bps to 3.85% in Wednesday trade, as risk off gripped US equities.
• To recap, the 10yr JGB yield fell to 0.55% on Wednesday sub the 200-day MA.
• The local data calendar just has weekly investment flows on tap. Tomorrow, we get Nov National CPI figures.
• Locally, Toyota is recalling 1 million vehicles sold in the US due to safety issues (see this BBG link).
• Also note the following option expiries - Dec22:Y143.00($1.1bln), Y143.50-55($1.2bln), Y144.00($1.2bln), Y144.45-50($1.4bln), Y145.00($2.7bln)