• USD/JPY market on volatile side recently, maybe same again today

• Market nervous over Japan FX intervention, paring of more JPY shorts

• IMM CTA data as of last Tuesday saw JPY shorts at recent highs

• With Nikkei opening weak today, more paring of stock currency hedges?

• Re-flaring of US-Iran tensions again seen USD positive however

• USD/JPY 162.12-40 EBS so far in Asia, range yesterday 161.67-162.18

• Recent retracement low 160.49 last Friday, high 162.84 July 1

• Technically, good bounce from top of 161.45-162.04 hourly Ichi cloud

• 200 and 100-HMAs in cloud at 161.92 and 161.76 also supportive

• In option expiries today 161.00-95 $3 bln, 162.00 $969 mln

• Also between 162.35-55 total $800 mln, on 163 total $2.4 bln

• JGB-US Treasury rate differentials narrower in 10s, off highs in 2s

• 10-year interest rate differential @164 bps, in 2s @272 bps

• Related comments , , , also

• US markets , , ,

• On US-Iran , ,

• On US economy , , for more click on [FXBUZ]

USD/JPY daily:


USD/JPY hourly:

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