USD/JPY briefly spiked up to 156.80 after seemingly hawkish PPI headlines
But deep downward revisions then noticed and Tsy ylds and dollar backed down
In fact, 2- & 10yr Tsy-JGB ylds spreads are lowest since April 5 & March 28
Pullback finding a foothold on hourly kijun at 156.24 by Mon's 156.26 high
Kijun and Mon's low are next supports at 155.91/50
Pricing of likely Sep & Dec Fed cuts only modestly changed at 21 and 44bps
Probabilities of BoJ rate hikes in July and Oct, beyond trend slowly higher
Japan's wholesale inflation adding to BoJ tightening prospects
But still wide spread between US and Japan rates and yields
Keeps carry traders in dip-buying and bullish mode for now
Focus now on Wed's U.S. CPI and retail sales, with Powell later today
If the data are hawkish, 61.8% of 160.245-151.86 at 157.04 is next target
Followed by May 1's 157.99 pre-2nd suspected intervention daily high
Intervention threat seen most acute if 160.245 & 1990's 160.35 highs at risk
For more click on FXBUZ