• Japan issues a warning on yen, bond yields as fiscal pressure mounts

• However, USD/JPY looks set to test Japan's resolve

• USD/JPY has seen a 160.06-160.29 range, on Tuesday, EBS data shows

• There is scope for a 2026 160.72 high retest, April 30 peak when Japan intervened in yen

• It remains above the tenkan support line that currently comes in at 159.69

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

Daily Chart


Correlation Chart


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