USD/JPY modest movement around the 144 yen level ahead of U.S.-China trade talks.

【6/9Market Overview

In Tokyo time, the dollar/yen rose to144.95yen due to observed dollar buying at the fixing. Afterwards, sell orders to take profits pushed it down to144.25yen. In European session, the dollar/yen briefly weakened to143.97yen, but buying on dips led the pair higher. In NY10year Treasury yields rose, lifting USD/JPY to144.77yen. However, after theNYFed released theMayconsumer survey, the inflation expectation for 1 year ahead fell to3.2% from the previous month’s3.6%.3year and5year ahead inflation expectations also declined from the previous reading, causing the U.S.10year yields to drop and weighing on the topside of USD/JPY. Thereafter, ahead of progress in the U.S.-China trade talks held in London, the pair stayed range-bound around the mid-144s.144yen area with little movement.

【6/10Market View