• USD bid across the board with USD/JPY in the lead, Asia 157.81 to 158.90
EBS
• Escalation in Middle East conflict, possible prolongation behind rise
• Japan very dependent on Middle East energy imports, US not so much
• USD/JPY may be heading for test of 159.23 peak January 23, 159.45 January
14
• Maybe even 161.96 July 3, 2024 though intervention probably likely before
• Large option expiries to downside today supportive 157.25-158.05 $3.2 bln
• Japanese official-speak conspicuous in its absence today
• Nikkei down over 7%, JGB yields jump on inflation fears, markets in
turmoil
• Tokyo pundits see possible stagflation ahead despite good data so far
• Japan wages up in Jan, large hikes eyed in Apr, Feb loans continued to
rise
• EUR/JPY tad lower but steady in 182.43-80 EBS range, above 181.84 100-DMA
• GBP/JPY 210.48-211.60, still ensconced in 209.53-212.20 daily Ichimoku
cloud
• CHF/JPY buoyant but sub-203.99 record high March 2, Asia today
202.37-203.53
• AUD/JPY sideways on higher plane, 110.18-111.12, recent high March 3
112.09
• Related , , on Japan data
USD/JPY hourly:

Nikkei 225:

Yield on JGB 10s - hourly:

(Haruya Ida is a Reuters market analyst. The views expressed are his own)