• USD/JPY has risen from 159.60 to 159.74, on Tuesday, EBS data show

• Japan tempers yen warnings despite renewed slide towards key 160 level

• An internal model shows USD/JPY should be trading well above 160

• Outlook technically bullish as spot continues to trade above the daily cloud

• The daily cloud currently spans the wide 156.52-158.87 region

• 30-day log correlation between USD/JPY and EUR/JPY is above +0.5 (pairs moving in tandem)

• SMFG markets chief: BOJ should signal clear rate path after June hike

Daily Chart


Correlation Chart


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