USD/JPY is just off the lows of the day, down 143 pips to 142.13.
It’s been a volatile week for the pair as it surged following the Bank of Japan decision but has since completely retraced. The market continues to aggressively price in US rate cuts and still sees scope for the BOJ to embark on a rate-hiking cycle.
USD/JPY has stayed soft in the past hour despite a retracement in Treasury yields. US 10s are now flat at 3.87% after falling as low as 3.83%. US 2s are trading at 4.35% from a low of 4.30%.
Eyes are on equities for a sense of the next move. The S&P 500 is up 30 points but is 15 points from the session high and sentiment is undoubtedly delicate after yesterday’s late rout.