Halister News

(Bloomberg) -- USD/JPY steady at 105.25, trading near its New York close which is highest level in 3 months; Japan December 10-year bond futures fell 7 ticks in overnight session to 151.73.

• Japan September core consumer prices fall 0.5% y/y vs estimate -0.5%; story here
• USD/JPY may test July 29 high at 105.63; expected to find layered offers ahead, traders in London and New York said
• JGB 10-year yields closed Thursday at -0.055% vs -0.060% on Wednesday
• JGB 30Y yield remains in head-and-shoulders bottom pattern barring break of neckline at 43bp, BofAML technical strategist Paul Ciana said in Oct. 26 note
• CPI data unlikely to be a major factor for USD/JPY now, according to BNP Paribas in note today;
• Sees CPI confirming that Japan remains in deflation; notes that although y/y rate of decline in energy prices is shrinking with the fading base effect from last year’s plunging prices, upward pressure on items other than energy is steadily softening, thanks to yen appreciation and sluggish domestic demand;
• However, does not not expect BOJ to take new action at the policy meeting next week
• BOJ’s Kuroda to appear in parliament as many as three times today