• USD/JPY back on 159 handle on US-Iran impasse, reports of incidents

• Asia 159.20-29 EBS so far after push up to 159.38 yesterday

• Market still likely capped ahead of 160 on Japan FX intervention threat

• Central bank comments out of Tokyo also in focus, BOJ likely hawkish

• USD/JPY daily Ichimoku cloud between 156.37-158.85 supportive still

• Spot also has cleared hourly Ichimoku cloud between 158.89-99

• 100-HMA 159.05 above cloud, 200-HMA 158.94 in cloud

• Option expiries today more supportive than not today

• Below between 158.70-99 $2.8 bln, 159.00-10 $1.7 bln, above 160.00 $942 mln

• Massive $2.4 bln however at 161.00 strike today

• No real change in JGB-US Treasury rate differentials

• Differential in 2s still on wide side at @265 bps, 10s narrow @178 bps

• Related comments , , , also

• US markets , ,

• On Middle East , ,

• Also on US bonds , poll on Nikkei
USD/JPY:


USD/JPY nearby option expiries this week:

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