• USD/JPY remains relatively bid despite USD weakness elsewhere

• Friday saw USD down across a broad front, USD/JPY off to 159.60 EBS too

• Some bounce since, 159.15-40 in Asia so far, high Friday 159.53

• Upside looks capped at 159.59 daily Ichimoku kijun, 100-DMA 159.99 above

• Base of 158.92-161.41 daily cloud pivot, underlining support 158.24 200-DMA

• Spot ensconced in 159.08-30 hourly Ichi cloud after break below Friday

• Bounce however from 200-HMA below then, 200-HMA now 158.66

• Option expiries today include 158.00 $2.3 bln, 158.25-95 $968 mln

• Also 159.00 $2.3 bln and $701 mln above at 159.50 strike

• JGB-US Tsy rate differentials narrower still, in 2s to @249, 10s @178 bps

• Narrower rate differentials finally having an impact?

• USD/JPY downside still limited but USD bulls getting antsy?

• Japanese importer bids still on dips but larger exporter sales pre-160?

• Tokyo likely more active this week with annual O-Bon holidays over

• Related comments , , also

• US markets , , ,

• On Middle East , US-China , Germany
USD/JPY daily:


USD/JPY hourly:


USD/JPY nearby option expiries this week:

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