USD/JPY flows: Reversing Tuesday's Direction

USD/JPY has reversed Tuesday's reversal and is trading 0.24% higher at 161.80, breaking the weekly high. The move seems to be accelerated by the first contraction in service PMI in two years. U.S. Treasury Yields are also outperforming JGB yields.

On the chart, the higher will see scope to the 162.00 level with deep overbought daily studies suggesting gains beyond this likely to prove limited. A later break, if seen, will shift focus to the 164.05/164.95, the December/November 1986 highs.