• USD/JPY bounced after swoon to 153.72 Monday, back in familiar range

• Swoon likely an outlier, back to core 154.50-156.50/154.00-157.00 range

• USD/JPY 155.44-63 EBS so far in Asia, quiet, much of Asia on holiday today

• Support from 155.40/30 hourly tenkan/55-HMA, hourly Ichi cloud 154.76-155.15

• 55-DMA at 154.98, daily Ichi cloud 153.29-154.24 below to provide base

• Resistance from descending 100/200-HMAs at 155.65/72, ahead of 156.00

• Soggy US yields to help cap, Treasury 2s @4.190%, 10s @4.533%

• Option expiries 154.75 $700 mln, 155.00 $1.8 bln, 155.80-156.00 $955 mln

• Focus to remain on Trump policies, FOMC policy announcement/Powell tonight

• Fed seen holding policy as is for now despite Trump pressure to ease

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USD/JPY:


USD/JPY nearby option expiries this week:


Yield on US Treasury 10s:

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