(Amended headline)

• Dollar kept aloft as another Trump deadline looms

• USD/JPY's daily chart points to an eventual 161 break

• Topside fears persist but option vol premiums are actually low

• Spot has seen a 159.45-92 range, on Tuesday so far, according to EBS data

• Upside limited due to continuing threats of FX intervention

• Fin Min Katayama vows close G7 coordination as markets remain volatile

• 30-day log correlation between USD/JPY and EUR/JPY well below +0.5

• The relationship between USD/JPY and EUR/JPY is breaking down

Correlation Chart


Correlation Chart


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