USD/JPY: consolidates at three-month highs around 105.20

USD/JPY is trading at 105.22, down -0.06% on the day, having posted a daily high at 105.34 and low at 105.18.

Despite US durable goods orders falling 0.1% in Sep (vs 0.0% expected), USD/JPY rose from 104.40 to 105.35 - a three-month high. Bonds fell through the floor as well and the US 10yr treasury yields rose from 1.79% to 1.87% while the 2yr yield rose from 0.87% to 0.89% leaving both of these both at five-month highs. Markets are concerned that Central Banks are running out of ammo while in December, the Fed are expected to actually hike interest rates. This has lead to other countries’ government bond yields also rising  with the German 10yr up from 0.08% to 0.19%, another five-month high, and the UK 10yr rose up from 1.12% to 1.29%. The US dollar index is up around 0.3% overnight and Wall Street was closing in the red after a choppy session albeit not weighing too heavily on risk appetite in an overall mixed US shift. 

Meanwhile, Japan released CPI data with core in deflationary territory -0.5 y/y and BOJ’s Kuroda is speaking in parliament today:  QE designed to meet price target, not underwriting Govt debt, nor helicopter money