USD/JPY flows: Tokyo CPI Rebound Above 2%

USD/JPY has faded the early rebound at 156.48 to 156.15 currently. U.S. Treasury are outperforming JGB yields. While the gap lower in JGB yields seems to be the reason for a run in the pair earlier in the session, comments from Ueda "If underlying inflation moves as we project, we will adjust degree of monetary support" seems to have provided JPY some bids as speculation of an June hike surfaces, echoing our call. Suzuki says intervention in late April/early May a response to speculation after the BoJ report shown roughly 10 trillion JPY was spent in FX intervention.