• Despite higher US rates, USD/JPY on back foot since Friday
• US rates higher yesterday before pushing down, Tsy 2s @3.375%, 10s @4.766%
• USD/JPY 156.92-157.95 yesterday, off from 158.88 spike high Friday
• Asia 157.13-47 EBS so far, closer to lows seen yesterday
• IMM CTA data show market now short JPY, caution keeping USD/JPY capped?
• Downside likely limited with US yields firm, range base around 156.00
• Double bottom in area - 155.97/156.02 lows Dec 20/31, also 156.25 Jan 6
• Japanese importer, maybe investor demand eyed into today's Tokyo fix
• Tech resistance from 157.69 200-HMA, 55/100-HMAs above at 157.78/94
• Option expiries today 155.80 $596 mln, 156.50 $800 mln, 157.00 $475 mln
• And 157.60-85 total $444 mln, 158.00-10 total 376 mln
• Related comments , , ,
• And , , , also
• US markets , , ,
• On the US economy ,
• On IMM CTA positioning , for more click on [FXBUZ]
USD/JPY:
USD/JPY nearby option expiries to Thursday:
JGB-US Treasury 10-year interest rate differential:
(Haruya Ida is a Reuters market analyst. The views expressed are his own)