• USD/JPY weekly chart showing a doji/hammer into a bullish engulfing candle

• The candle signals supporting a more constructive look to USD/JPY

• Broad based dollar gains, broad based yield gains and fresh geopolitical concerns

• A toxic mix for the yen and the market appears happy to take the currency lower

• USD/JPY up to 158.67 (EBS) likely deep in rate checking territory: Thurs pullback cited

• Look for heightened market sensitivity/MOF presence on the approach to 159.00

• A huge $5 bln option strike at 159.00 expires at 10 a.m. New York time on Mon May 18
USD/JPY weekly chart:


(Peter Stoneham is a Reuters market analyst. The views expressed are his own)