• USD/JPY off yesterday, from 158.08 to as low as 155.93 EBS
• Catalyst was BOJ Ueda talk that a rate hike would be debated next week
• Tokyo still sees chance of hike less than 50-50 but weak longs stirred
• Ueda-speak similar to Himino-speak Tuesday, debate on but no action?
• Big drop in US rates post-CPI helped USD/JPY lower later
• Yield on Treasury 2s 4.373% to 4.257%, 10s off more, 4.790% to 4.637%
• US CPI post large gain but underlying inflation seen slowing?
• USD/JPY bottom again around 156.00? Asia so far 156.23-48
• USD/JPY move down likely to up demand from Japanese importers, investors
• Plenty of recent lows in area including 155.97 Dec 20, 156.02 Dec 31
• Break below 155.90 would take pair out of range seen since Dec 20
• Ascending daily Ichimoku kijun 155.34, 55-DMA 154.62 below
• Option expiries today include 156.00 $625 mln, 157.00 $1 bln
• Related , , on BOJ ,
• Also , more on US CPI
• US markets , , ,
• Fed-speak , , for more click on [FXBUZ]
USD/JPY:
USD/JPY nearby option expiries into next week:
Yield on US Treasury 10s:
(Haruya Ida is a Reuters market analyst. The views expressed are his own)