💹USD/JPY Lagging Move Lower In Yields: Cable FX Macro

• USD/JPY has seen a decline of about 5BF this month, yen strength has extended this week to test 147.0 and breach the pair's 100DMA

• Yields have supported the USD/JPY move lower as the 10-year reaches 4.267%, and a further undiwnd of USD rate premium will send Treasury-JGB differentials lower

• A USD/JPY rate differential below 350bps suggests the pair could be trading closer to 145.0

• We will have inflation releases from both US and JP over the course of next week