USD/JPY prints a trade at 148 for the first time this year

The USD/JPY has just this minute printed a trade at 148. That is the first time it has done that this year and the grind higher came despite amid yet more verbal warnings and Jaw-boning from Japanese officials today. However, I refer to all that I said in an update here yesterday, regarding the huge increase in Japanese dollar denominated deposits now being offered to Japanese investors. The move higher in the USD/JPY might be partly about flow there, but it is also about those higher US treasury yields right now and the prospect of the Fed surprising the markets with another rate increase this evening. Of course the Fed might disappoint in that regard too and that makes the USD/JPY very much front and centre of any FX reaction later today (along with the GBP/USD and EUR/USD too of course). The USD/JPY does seem to have met with some resistance at 148 and is currently backing off slightly, just now at 147.93