Yen Supported By Lower US Yields & Equity Pull back

USD/JPY fell post the Asia close on Tuesday with much of the damage done in US trade. US data was weaker than expected, particularly in terms of the detail in the ISM services print. The pair got to a low of 149.71, but we track slightly higher now, near 150.00. Earlier Tuesday highs were at 150.55.

• Yen is up around 0.40% firmer for Tuesday's session, to be the best performing G10 currency. The softer yield backdrop in the US (-5-7bps weaker, led by the back end) was a yen positive.
• Also supportive was the sharp pull back in US equity sentiment, with the SPX and Nasdaq off 1% and 1.6% respectively. Higher beta FX in terms of AUD and NZD was weaker, although losses weren't large. The BBDXY is slightly lower to 1240.75.
• Still for USD/JPY we again couldn't sustain a break sub the 20-day EMA (149.78). This may be a focus point today, note the Feb 29 lows sits further south at 149.21, while the 50-day EMA is at 148.44. The overall technical picture remains bullish supportive for USD/JPY though.
• The local data calendar is empty today, with Jan labor cash earnings in focus tomorrow. We also have BoJ speak tomorrow ( by board member Nakagawa).
• In the option expiry space, note the following for NY cut later: Y149.50($524mln), Y149.80($907mln), Y150.00($684mln), Y150.20-25($800mln), Y151.10($1.1bln).