USD/JPY flows: No mercy for the JPY

Fast approaching annual high, the JPY has received no mercy. Despite BOJ’s Koeda signals need for further tightening as inflation holds near 2%, a hawkish tilt from her previous vote to keep rates on hold, the fiscal worry on new stimulus package seems to have continue to weigh on JGB and see 10yr JGB yields searching for new high above 1.8%.

USD/JPY is trading 0.17% higher at 157.40.