Yen Takes Hit Upon Breach Of Y124.00

USD/JPY extended its winning streak to five straight days Thursday, but failed to take out the prior day's high. Continued hawkish drumbeat coming from the Fed pushed U.S. Tsy yields higher still and reminded about growing policy divergence with the dovish BoJ.

• The pair has registered some further gains this morning. The breach of round figure resistance at Y124.00, repeatedly tested on Thursday, resulted in a stronger upswing and rendered JPY the worst G10 performer.
• USD/JPY last trades at Y124.12, up 17 pips on the day, with its RSI moving further into overbought territory. Key resistance remains at Y125.09, the high print of Mar 28. Conversely, bears look for a pullback under Mar 31 low of Y121.28.
• Yomiuri reported that PM Kishida will hold a press conference today to announce new sanctions against Russia. New measures will include restrictions on Russian coal imports and further personal penalties for Russian officials, with the government also considering freezing the assets of Sberbank.
• Today's round of BoJ Rinban operations will be closely watched as the global bond sell-off is putting the official cap on 10-Year JGB yield at risk.
• Japan will release monthly BoP current account balance shortly, with Eco Watchers Survey coming up later in the day.
• Next week will see two scheduled appearances from BoJ Gov Kuroda, who will speak on Monday and Wednesday.
• Elsewhere, flash machine tool orders (Monday), PPI (Tuesday) and core machine orders (Wednesday) are also due.