- USDJPY sees a small dip lower following those remarks from FM Suzuki (rate differentials not only factor in FX levels now) and BoJ’s Ueda (chance weak yen may affect trend inflation which could lead to a policy shift) speaking in Washington.
- At 154.60 currently, it’s helped it a little further off the earlier high of 154.68, which had stopped short of Tuesday’s fresh all-time high of 154.79.
- Bulls remain in the driver’s seat, with that 154.79 marking resistance before the round 155.00. However, while the technical trend condition in USD/JPY remains positive, the next phase of strength could be harder to come by without another major shift in Fed policy pricing, as positioning looks stretched and diplomatic blockers to potential intervention appear to peel away.
- The JPY remains one of the better G10 FX performers today, behind only USD and CAD which have benefited from a shunt higher in US yields.
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