[MARKET ANALYSIS] JPY outperforms as Trump reportedly voiced concerns on JPY weakness; USD eases after four-day advance

DXY is modestly softer amid lower oil prices and after the Yen-led move weighed on the index (see below), although the Buck remains underpinned by this week's rise US yields and expectations for further Fed tightening, with DXY posting four consecutive sessions of gains this week thus far. DXY currently resides in a 101.11-101.31 at the time of writing, JPY is the clear G10 outperformer, with USD/JPY sliding ~30-40 pips on several seperate occasions overnight and this morning, price action that can also be seen across other JPY crosses. The move comes after comments from Japanese Finance Minister Katayama, who stated that US President Trump voiced concerns about yen weakness, while she reiterated Japan will closely coordinate with the US on foreign exchange. Furthermore, Goldman Sachs lowered its USD/JPY forecasts to 158.00 in three months, 155.00 in six months and 150.00 in 12 months, from 162.00, 163.00 and 165.00 respectively. USD/JPY has extended lower, down roughly 80 pips at the time of writing 157.95-158.90 range. EUR/USD is modestly firmer, with much of the upside stemming from the JPY-induced pressure on DXY rather than any fresh bloc-specific catalyst. The pair remains tucked within yesterday's 1.1359-1.1399 range, with today's parameter between 1.1368-1.1390. GBP/USD is modestly firmer but remains well below 1.3300 following this week's Sterling weakness. UK-specific catalysts are light, leaving broader USD dynamics to dictate price action. Cable currently resides in a 1.3209-1.3229 range. Antipodeans are modestly firmer intraday with fresh domestic catalysts are limited, with moves largely reflecting the broader easing in the Dollar, whilst mainland Chinese participants were away overnight. AUD/NZD is modestly firmer but off highs in a 1.2375-1.2409 range.