On Friday there was a little-noticed report from Reuters citing three Japanese FX policymakers. They continued to warn about excessive yen declines but are also turning their attention to risks around a sharp yen rally.

"There's a chance the U.S. economy could slide into recession, which could trigger significant dollar selling," said one of the policymakers, who all declined to be identified. "We need to worry about both the risk of excessive dollar falls and dollar rises."

That's not a problem today though, although the market is thinned by the US holiday. USD/JPY is up 52 pips to 135.71.

USDJPY intraday
USDJPY intraday

We're still in the turn-of-quarter period and the holiday is skewing it so these moves are tough to interpret. Tomorrow will be telling.

Aside from USD/JPY, it's a mixed picture for the dollar. AUD/USD has bounced nicely today though it's well off the best levels. The euro, New Zealand dollar and pound are mostly unchanged.