• Yen strengthens as BOJ wholesale data was enough to justify fears of higher interest rates

• USD/JPY has slipped from 158.64 to 158.00, on Tuesday, on the EBS

• However the cloud, that currently spans the 156.64-158.44 region, should prevent a collapse

• The tenken and kijun lines on the daily chart are bullishly aligned

• The overall bias remains on the upside as the pair usually climbs in October

• USD/JPY and EUR/JPY tend to move in tandem, 30 and 60-day log correlations are high above +0.5

Daily Chart


Correlation Chart

(Martin Miller is a Reuters market analyst. The views expressed are his own)