USD/JPY flows: Taking a break

While we continue to hear more jawboning from Japanese officials, the shine for Japan lies in another strong export report. Japan March exports came in at +7.3% y/y, expanding four month in a row with exports to China leading the gains. It shows the merit of a soft JPY. However, we see import contracts which is the downside for weaker JPY and also showing a soft domestic demand from Japan.

USD/JPY is taking a break and trades 0.07% lower at 154.6 with both the U.S. Treasury and JGB yields higher.