USD/JPY holds onto 147 in Asian trading

As reported here, on Friday the USD/JPY fell below the 147 handle for the first time this year and for the first time since October 4 last year. The low seen was set at 146.95 and it came after the latest US monthly jobs report rather underwhelmed the markets and right as the US stock markets opened in the red. The rebound that followed above 147.70 was then followed by another release below 147, but it did not break below that prior low. The low on the second relapse was set at 146.96 and that lack of follow-through set up a rally into the weekly close. The USD/JPY lifted quite steeply, to 148.20. It later closed out the week at 148.04. The driver for that? US yields rising some 10 basis points into the close as US bonds fell in tandem with a rebound in stocks. Clearly a less risk averse position which also helped the Yen to weaken. However, since the Asian opening last night, the dollar has fallen back with US equity futures. That saw the USD/JPY fall back to 147.09, but perhaps importantly, it held the 147 handle this time and has rebounded again ahead of the European opening. That said, the immediate outlook remains highly uncertain. There will be more to follow on this one today for sure. The USD/JPY is currently trading at 146.65