• USD/JPY extends higher as 145 is breached

• Dovish BoJ the initial catalyst. Lift in UST yields/oil add to rise

• ISM manufacturing PMI not as soft as feared (48.7 vs 48 f/c)

• Given record yen longs, positioning unwind can lead to larger rally

• Squeeze risk could pave the way for a test of 148.00-20

• Recall that USD/JPY drop was largely a function of the fall in US assets

• With equities continuing to catch a bid, SPX +1.3%, this supports USD/JPY

• Focus turns to Friday's payrolls print
usdjpy POSITIONING and USDJPY

(Justin McQueen is a Reuters market analyst. The views expressed are his own.)