• USD/JPY fell to 158.60 EBS overnight after mild CPI data, has bounced since

• Bounce to 159.55 before peaking out, Asia so far today 159.29-44

• Out of, below daily Ichimoku cloud for a bit, back in, cloud 158.92-161.41

• Underlining support eyed at ascending 200-DMA at 158.18

• Back above hourly Ichimoku cloud between 158.56-159.29, 100-HMA 158.82

• More massive option expiries scheduled for today, to help contain spot

• 158.00-50 $2.6 bln, 159.00 $1.9 bln, 159.05-80 $1.9 bln, 160.00 $1 bln

• JGB-US rate differentials narrower still, in 2s to @256 bps, 10s @183 bps

• Tokyo market to remain thin this week on annual O-Bon holidays

• Japanese importer bids at fix, on dips, foreign stock-buy ccy hedges too

• Related comments , , , also

• US markets , , ,

• On US data , , on US-Iran
USD/JPY:


USD/JPY nearby option expiries into next week:


JGB-US Treasury 2-year interest rate differential:

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