USD/JPY Flows: JPY Consolidation with Mixed Views

USD/JPY push higher has run out in Europe and Americas trading.  Though the Asia bounce is being some as a correction after 4 days of JPY gains, but others as the start of new JPY bearishness.  Views are mixed with some wanting to test the upside and feeling the BOJ intervention risk is low until 156/57.  Yield spreads are also still wide and unlikely to narrow much more. Others feel that USDJPY is seeing a technical correction and likely to test 152 in the coming days/weeks.  We would be in the latter camp, as the market mood is becoming less USD bullish and this can clear out some more speculative long USD positions. However, that will then likely be a base for the USD.