The geopolitical bid in the yen has largely reversed.
The pair is at a fresh 34-year high, up a half-cent on the day as the market senses a peaceful resolution in the Iran-Israel skirmish. The signal from FX is consistent with equity (futures +0.4% in the US) and bonds (yields up 4-6 bps across the curve), and oil (down 30-cents).
USDJPY 1 day chart
For the yen, the move is particularly notable as it pushes into technical blue skies.
Eyes are on Japan for signs of intervention but given that the recent move has largely been on broad USD buying following fundamentally stronger CPI numbers, it's a tough one to lean against. There have been signs of a managed decline but no real intervention. However there is a limit and we could see them draw a line at 155.00.