• USD/JPY upside limited yesterday on dovish US CPI data

• Data lessened chance of hike this month but Fed hawkish stance to remain?

• FOMC Chair Warsh promised appropriate policy despite any political pressure

• USD/JPY range yesterday 161.60-162.48, Asia so far today 162.13-27 EBS

• Back to stasis on or around 162.00? Japan FX intervention risk still

• US yields off post-CPI but US-Iran tensions still high

• JGB-US Treasury rate differentials ramped up yesterday to recent wides

• In 2s, rate differential to around 286 bps, in 10s to around 192 bps

• Technically, USD/JPY moving back into its 161.88-162.23 hourly Ichi cloud

• 100-HMA just below in cloud at 162.14, ascending 200-HMA 162.00

• Nearby option expiries today 161.00 $880 mln, 161.85-162.00 $1.8 bln

• Less topside, between 162.15-30 total $549 mln, 163.00-35 total $1 bln

• Related comments , , ,

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USD/JPY daily:


USD/JPY hourly:

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