Yen To Multi Week Highs On BoJ Speculation & Lower US Yields

USD/JPY got to 147.59 by NY trade, before finding some support. We sit near 148.00 in early Friday dealings. This leaves yen around 0.9% stronger for Thursday's session (opening levels in the pair were close to 149.40). This left yen as the top performer for the session, albeit only marginally stronger than NOK and AUD.

• A host of yen positives carried over into post the Asia close yesterday. Rengo, Japan's largest union, stated average wage demands were close to 6%. Whilst the final negotiated figure is likely to be lower than this (initial results on March 15), it is helping fuel expectations that an end to NIRP is coming, potentially as soon as the March policy meeting. This followed stronger than forecast Jan wages data.
• The generally lower trend to US yields (more so at the front end) during US trade, also helped the yen. A dovish read on Powell's testimony, coupled with slightly poorer than expected weekly jobless claims weighing on yields.
• In terms of USD/JPY levels, focus will be on Thursday's intra-day low at 147.59. A break sub this level would open 146.83, a Fibonacci retracement. Initial resistance to watch is at 149.77, the 20-day EMA. Also note the 50-day EMA is at 148.54.
• The data calendar is busy today but mainly with second tier data. Jan household spending is out along with Jan BoP, trade figures. Bank lending figures for Feb are also due. Later on, the Eco watchers survey and the leading and coincident indices are due.
• In the option expiry space, note the following for NY cut later today: Y146.90-00($1.1bln).