Treasury’s Brainard: US supports Japan’s efforts to reinvigorate growth, end deflation

• G7 needs to deliver on pledge to market-based rates
• G7 ‘very committed’ to floating FX
• Important for fiscal and monetary policy to focus on domestic objectives
• US in frequent communication with Japan, other G7 members

That’s a bullish USD/JPY headline. Some minor upside in the pair so far but it sounds like the US has no problem with higher USD/JPY and that would be a significant hurdle out of the way.