• USD/JPY has risen from 158.70 to 159.17, on Tuesday, according to EBS data

• It is traded through the top of the daily cloud that currently spans 156.38–158.91

• A daily close above the cloud would add to the upside bias and put the focus on 160

• Trading persists above the 158.54 Fibo, a 61.8% retrace of the 160.72-155.00 "intervention" drop

• A simple call option can be used to capture an upswing, mitigate near-term intervention risks

• 30-day log correlation between USD/JPY and EUR/JPY is above +0.5 (pairs moving in tandem)

Daily Chart


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