Yen Underperforms Amid Risk On G10 Backdrop, BoJ Expected To Discuss NIRP Exit Next Week

USD/JPY probed above the 148.00 level late in Asia Pac trade yesterday, but couldn't sustain moves beyond this region. We start Thursday Asia Pac trade in the 147.70/75 region, little changed for Wednesday's session.

• Dips in the pair were supported through US trade (147.45/50), as US yields finished higher across the curve (roughly 3-5bps higher). Broader USD sentiment was slightly weaker though, the BBDXY down 0.12% to 1229.07.
• Yen and CHF were the weakest performers in the G10 space, with a generally risk on tone weighing at the margins. Major equity markets were mixed with US cash indices finishing lower, but major EU benchmarks mostly climbed.
• Focus in Japan will remain on next week's BoJ meeting. BBG noting the bank is considering scrapping ETF buys, but maintaining bond purchases (headlines crossed late yesterday, see this link). Nikkei also reported that the BOJ will discuss ending NIRP at next week's meeting (see this link).
• This comes after yesterday's flurry of wage related headlines. The Rengo announcement will be in focus tomorrow around its first tally of wage agreements. Its members, which make up the largest union federation in Japan, have asked for a 5.85% rise. Most of yesterday's announcements were around this level or higher (see this BBG link).
• The local data calendar just has weekly investment flows on tap today.