• USD remains bid on re-flaring of Middle East tensions though oil prices off

• USD/JPY remains on hold just below 162.00, Asia so far today 161.71-89 EBS

• Japanese FX intervention conspicuous in its absence, offers still pre-162

• Option barriers at 162.00 still seen in jeopardy, defensive sales ahead

• Japanese exporter offers likely mixed in, spec profit-taking too?

• Dips bought however, demand remain strong - Japanese importers, retail

• Also hedging flows on foreign investor Japanese stock purchases

• JGB-US Treasury rate differentials down from recent highs, 2s to @268 bps

• Differential in 10s near trend lows @177 bps

• Vanilla option expiries today total $3.4 bln between 161.00-50, supportive

• $1.7 bln between 161.75-162 too, will likely help cap upside

• Related comments , , ,

• Also

• US markets , , ,

• Oil early Asia , on Middle East ,
USD/JPY:


USD/JPY nearby option expiries this week:


Nikkei 225:

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