Japan may never grow again and the US is going gangbusters. That’s the perception, at least for today. Rising US bond yields, especially on the short-end of the yield curve, are helping give USD/JPY a solid. Bid. US 2-year notes are up 6 bp in yield after the firm US retail sales data, suggesting the market anticipates the Fed removing more of its extraordinary accommodation sooner than expected, if not actually hike rates.
US consumer sentiment rebounded in the early December reading of the University of Michigan survey. It came in at 73.4 versus a consensus of 68.5%. It has been yo-yoing around 70 in recent months.
Resistance is eyed at the 89.56 level in USD/JPY near-term with more up at 90.10. We trade now at 89.52.
