Traders report heavy buying in EUR/JPY from a US money center bank, ramping USD/JPY from the 90.50 level to fresh highs for the rally at 90.77. EUR/JPY was dragged to 123.63 in the process, according to EBS data.
Firmer US bond yields are contributing to USD strength this morning as 2-year notes rise 3 bp to 0.90%. 10-year notes are 6 bp firmer in yield, now up to 3.73%.
Expect offers toward the 91.00 from the exporter community. The upcoming Dai Ichi Life IPO is thought to be a headwind for USD/JPY should Japanese investors bring money home to buy the big offering. Also working against the rally is seasonal repatriation by Japanese companies haed of the end of the Japanese fiscal year on March 31.
