November 22, 2022 22:30 GMT
Yen Rebounds On Lower UST Yields, Japan Holdiay Today
Yen rebounded against the USD post the Asia close, with USD/JPY getting just under 141.10. The pair then consolidated between this region and just above 141.50. We currently track close to 141.25. Note the simple 100-day MA comes in at 141.14.
- Yen benefited from a broad pull back in USD sentiment through Tuesday, although it was a mid range performer compared to the rest of the G10.
- Lower US nominal and real yields likely aided the yen move. The real 10yr yield pulled back to 1.44%, although we remain above recent lows near 1.38%.
- USD/JPY still looks too low relative to yield differentials with the US, but the directional correlation remains strong between the two series.
- Note today is a holiday in Japan for Labor Thanksgiving day.