• USD/JPY trading above the daily cloud, that currently spans the 156.38-158.98 region

• Spot has seen a 158.81-159.09 range, on Thursday, according to EBS data

• Expect bigger gains through the 159.37 Fibo, a 76.4% retrace of the 160.72 to 155.00 drop

• Market wary of MOF-ordered FX intervention but USD/JPY demand is noted on dips

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

• BOJ Koeda reinforced hawkish expectations at June BOJ Policy Board meeting

Daily Chart


Daily Chart


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