• USD/JPY back on 159 with USD seeing some bounce after another fall overnight

• That said, USD/JPY upside seen limited with Japanese exporters on warpath

• Good selling yesterday and more likely today despite importer demand

• JGB-US Treasury rate differentials narrower still too, in 2s to @246 bps

• Moves in line with fading Fed rate hike expectations, higher JGB long yields

• Technically, USD/JPY still in 158.92-161.38 daily Ichimoku cloud

• Looks capped above 159.59 daily kijun, 100-DMA above at 160.00

• Hourly shows push back towards 159.29 100-HMA, kijun 159.22, cloud 159.08-12

• Underlining support on this chart at ascending 200-HMA at 158.86

• Option expiries today include 159.00-25 total $1.4 bln, 159.45-90 $1.2 bln

• USD strength on Middle East developments getting old, focus shifting?

• Related comments , , , also

• US markets , , ,

• On Middle East , Fed , Trump

• On flows/US Treasuries , for more click on [FXBUZ]

USD/JPY daily:


USD/JPY hourly:

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