• Yen languishes at key 160 level as Gulf hostilities boost dollar

• USD/JPY has risen from 159.82 to 160.00, on Wednesday, EBS data show

• Japan warns as traders push yen to intervention zone before key BOJ speech

• Finance Minister Satsuki Katayama signals readiness to act on FX

• USD/JPY options spike higher, poised for FX breakout

• An internal model shows USD/JPY should be trading well above 160

• Outlook technically bullish as spot continues to trade above the daily cloud

• The daily cloud currently spans the wide 156.59-159.04 region

• 30-day log correlation between USD/JPY and EUR/JPY is above +0.5 (pairs moving in tandem)

Daily Chart


Correlation Chart


(Martin Miller is a Reuters market analyst. The views expressed are his own)