• Short-covering and fresh spec buys in thin, late-Tokyo trading
• Promise of Trump tariffs on Canada/Mexico/China February 1 seen behind move
• USD/JPY surged to 154.88 EBS, high earlier 154.51, low 153.93
• USD/JPY up against descending hourly Ichimoku cloud between 154.88-155.12
• Descending 154.79 55-HMA pierced, 100-HMA 154.97 in cloud, 200-HMA 155.45
• Bump up in US yields in afternoon Tokyo trading seen USD supportive
• More upside possible but Japan not tipped to be in tariff mix at this time
• Massive option expiries today at 155.00 $1.4 bln, between 155.35-50 $1.3 bln
• Options likely to help cap further USD/JPY rises
• Related comment , also , for more click on [FXBUZ]
USD/JPY hourly:
(Haruya Ida is a Reuters market analyst. The views expressed are his own)