• Yen and dollar drift on Iran deal concerns, payroll jitters

• USD/JPY has seen a tight 157.57-157.85 range, on Thursday, according to EBS data

• Nervousness over more FX intervention fading a bit but still seen as possible

• The recent price action hints at a downside rejection at least in the near-term

• There is scope for a bigger USD/JPY recovery to eventually test the 158.56 Fibo

• 158.56 Fibo is a 38.2% retrace of the recent 163.99-155.20 intervention fueled slump

• USD/JPY and EUR/JPY tend to move in tandem, log correlations are high above +0.5

Daily Chart


(Martin Miller is a Reuters market analyst. The views expressed are his own)