USDJPY H1 14-09

They are looking to draw a hard line near 145.00 and barrier options at the figure level are also in play as the pair comes within a whisker of testing the key level once again today. The run higher came in the aftermath of the US CPI data yesterday, where we saw a push to the upside from 142.00 at the time.

That comes as Treasury yields also push higher with 10-year yields now holding at 3.42% on the day - up from around 3.30% before the key risk event yesterday.

In case you missed the remarks from the Japanese authorities, Eamonn has it up on this post here.

The wording might be a bit fiercer than before but when it comes to market sentiment, it is more so about the frequency and tenacity of the remarks. For now, Japanese officials are certainly stepping up the rhetoric and that is pinning down USD/JPY - even if the bullish outlook remains largely intact in the bigger picture.

For now, 145.00 remains the key resistance point with near-term support seen closer to the 100 and 200-hour moving averages at 143.22 and 142.45 respectively.