• USD/JPY saw some bounce yesterday, spec short-coming, US PPI firm in places

• Some specs look to have booked some more profits on recent shorts

• Market still seen net short JPY however, Japan exporter offers eyed too

• Upside limited to 155.00 area, just above?

• Eyes now on US CPI out tonight, expectations for YY 3.4%, core 2.4%

• USD/JPY 154.32-61 EBS so far in Asia, 154.66 high o/n, on quiet side today?

• Spot now above 154.11 descending 100-HMA, Ichi tenkan 154.33, kijun 153.97

• Hourly Ichimoku cloud 153.45-66 and likely support for now

• Some massive option expiries in area today - 153.00 $2.9 bln, 154.00$3.1 bln

• And 154.50 $550 mln, 155.00 $1.1 bln, 155.50-75 $546 mln, 156.00-30 $1.2 bln

• JGB-US Treasury rate differentials wider, 2s towards @260, 10s @194 bps

• US CPI data tonight likely to affect US rates again, Fed expectations

• Middle East conflict re-escalation, higher crude fanning inflation fears too

• Related comments , , ,

• And , , , also

• US markets , , ,

• On US PPI/economy , , ,
USD/JPY:


USD/JPY nearby option expiries into next week:

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