The yen headed for its longest bull streak since 2018 as traders mulled the chance the Bank of Japan may alter its yield-curve-control policy this month.
USD/JPY was poised for a seventh day of declines. Former BOJ executive director Hideo Hayakawa said he expects YCC to be adjusted in July given inflation is stronger than expected. Fast-money funds exited long dollar-yen positions as the 10-year US-Japan spread narrowed, triggering technical stops in the process, a trader said.
The yen's gains are "largely due to a sharp fall in US Treasuries yields and to some extent, expectations for a BOJ move in the next two weeks' time," said Christopher Wong, a strategist at Oversea-Chinese Banking Corp. Support for USD/JPY is seen at 137 followed by 136.15, he added.
USD/JPY fell 0.2% to 137.81; pair has dropped 3.1% this week, the biggest decline for the period since December.
The Bloomberg Dollar Spot Index slipped 0.1%. The yield on 2-year Treasuries rose 2bps to 4.65% after sliding 12 basis points on Thursday. AUD/USD fell 0.1% to 0.6883; pair has gained 2.9% this week. EUR/USD was steady at 1.1228.
Source : Bloomberg
