Yen Still Outperforming On Crosses, Some Support From Higher JGB Yields

Yen outperformance, which was a theme from Monday's session, is continuing in the first part of Tuesday trade. USD/JPY sits near 156.80/85 in latest dealings, around 0.15% stronger in yen terms versus end NY levels from Monday.

• Lows came in just under 156.70 earlier in the the pair, which were still above Monday intra-session lows (156.29). Local yields are ticking higher, with some spillover likely from the modest rise in US yields on Monday.
• Some focus may also rest on comments from the LDP's Motegi on Monday around calls for the BoJ to better explain policy normalisation and that the weaker yen is negative for the Japanese economy. This comes ahead of next Wednesday's BoJ policy meeting.
• The rest of the G10 complex is slightly weaker against the USD, with AUD/USD and NZD/USD both off less than 0.10% at this stage. AUD/USD is under 0.6640, NZD/USD around 0.5970/75. NOK is off by close to 0.15%.
• In the cross asset space, US equity futures are down slightly, while US yields are sit weaker, but losses are not much beyond 0.5bps at this stage.
• The regional data calendar is light today. We have BoJ Rinban operations coming up soon. Later on June machine tool orders print in Japan.