USD: Recovery continues against the Japanese yen - BBH

The research team at BBH notes that the US dollar continues to recover against the Japanese yen.  

Key Quotes

“There is an $800 mln option struck at JPY114 that will be cut today.  The dollar is up for the third day against the yen and in the past 17 sessions, it has only fallen four times.  Over this period, the US 10-year premium has risen by about 20 bp to 2.35%.  Adjustment on the crosses also seems to be playing an important role in the yen's weakness against the dollar.  Since April 17, the euro has gained nearly 8.5% against the yen.  The JPY125 area is of technical significance for the cross.  Above there, and the euro can rise toward JPY130.”