• USD/JPY has rebounded from the Asia 158.96 low, to hit 159.68 in London, EBS data shows

• The yen initially firmed after the Bank of Japan held rates steady in a 6-3 split vote

• Bank of Japan keeps rates steady but hawkish split points to June hike

• Spot slipped below the kijun line in Asia, currently at 159.03, but is now well above

• Scope for a retest of the crucial 160 level, that traders worry could prompt Tokyo to intervene

• Fin Min Katayama: Japan ready '24 hours' to act on currency swings

• 30-day log correlation between USD/JPY and EUR/JPY is well below +0.5 (relationship broken)

Daily Chart


Correlation Chart


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