• USD/JPY fell following a fleeting rally to 131.12 on EBS after US PMI

• PMI beat f/c, but remained deep in contraction range nL1N34915S

• The knee-jerk PMI rally only briefly cleared the 21-DMA by 131

• Session low since at 129.73 as Tsy yields and oil prices retreated

• Downtrend since Oct remains intact w/o a close above the 21- & 30-DMAs

• If US GDP, claims, PCE on Thur and Fri are soft, selling will increase

• BoJ seen less likely to reduce its ultra-easy policies near-term

• Puts more USD/JPY trading focus on Tsy yields, US data & Feb. 1 Fed

• Jan's trend low, 50% of 2020-22 rise & May low are key @127.215/6.56/37

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