• USD/JPY consolidating on 159 while Tokyo slept, Asia today 159.26-32 EBS

• Seems some nervousness over fresh Japan FX intervention still but nothing

• Could be Japan awaiting September's likely BOJ hike but already discounted?

• Only fresh intervention will get JPY higher but effectiveness questioned

• USD on back foot elsewhere, USD up vs JPY on fresh hedging of stock buys?

• Nikkei decent rise Monday to 67,006.84, when USD/JPY broke back above 159

• Nikkei maybe heavier today with Wall St off overnight but downside limited?

• Japanese importers look to buy into any dips as heretofore

• Technically, USD/JPY back in 158.92-161.38 daily Ichimoku cloud

• 100-DMA 160.01 in cloud, 200-DMA below cloud at 158.15

• Hourly Ichimoku kijun 159.16, cloud 158.02-82 below, supportive too

• Option expiries likely to help contain spot action today with market thin

• 159.00 $1.3 bln, 159.05-45 total $473 mln, 159.50-75 $1.3 bln

• JGB-US Treasury rate differentials narrower still but shrugged off

• In 2s differential to @258 bps, in 10s holding @184 bps

• Related comments , , ,

• Also , on US rates

• US markets , , ,

• More on crude , on Middle East ,
USD/JPY:


Nikkei 225:


JGB-US Treasury interest rate differential:

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