USD/JPY is just over 1% higher today as it reacts to the rise in US yields, ING’s FX analyst Chris Turner notes.  

Broad USD strength to dominate

“The Yen (JPY) also acts as a liquid proxy to Asian currencies about to be hit with another trade war. The Bank of Japan will not like another big run up in USD/JPY, although FX intervention looks unlikely amidst broad dollar gains.”

“We think the JPY can outperform on the crosses especially were the Republicans not to gain the House. Under this scenario, US equity markets (particularly bank stocks) could hand back some of their recent gains. For the time being, however, expect broad USD strength to dominate and 155 to prove the direction of travel.”