• USD/JPY up with Tsy yields after speciously strong US data

• Headline GDP and durables beats masked underlying weakness nL1N34B1GJ

• And early Tsy yields rise retreated after the 7-yr auction take-down

• Thur's 130.625 high on EBS held well below the 131.58 post-BoJ peak

• And also below the falling 30-DMA at 131.53 by the dn TL from December

• BoJ's 50bp cap on 10-yr JGB ylds leave yen vulnerable to yld rises elsewhere

• But core weakness in GDP and durables limits Tsy yld gains

• Fed still seen downshifting to two 25bp hikes before H2 onward rate cuts

• Core PCE, income, spending and saving are Fri's top data focus

• Mich sentiment and pending homes sales unlikely to move the needle

• A sub-129 close could bring 127.215 trend lows into play again

• Key for the downtrend may be response to the Feb. 1 Fed news

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