• USD/JPY up to 160.03 EBS yesterday before reversing, falling, breaking south

• News of a Middle East two week ceasefire sends crude oil prices, USD down

• Middle East crude flows out of Hormuz Strait looks to be guaranteed for now

• Asia seeing USD/JPY down from 159.74 to 158.61 on back of the good news

• Towards 158.56 low last Friday, 158.28 low April 1, maybe even 158.00 test

• Threat of Japan FX intervention looks to be much less now but caution still

• Larger option expiries today both to downside and upside

• 158.00 $622 mln, 158.40-45 $900 mln, some at 159.50, 160.00 $1.1 bln

• Long JGB-US Treasury rate differentials off yesterday, in 10s to @190 bps

• More narrowing likely to prove JPY supportive

• Related comments , , ,

• And , , also

• US markets , , ,

• On US-Iran , US data , central banks
USD/JPY:


Brent crude oil futures:


JGB-US Treasury 10-year interest rate differential:

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