• Lack of Japan FX intervention allowed USD/JPY to pop higher to 163 handle

• Yesterday saw 162.44 to 163.24 rise, Asia so far today 163.18-22 EBS so far

• Renewed US-Iran hostilities, closing of Red Sea too, higher US rates factors

• Wall St rally, expectations of Nikkei rally, foreign currency hedges too

• USD/JPY highest in 40 years, next resistance 164.00, then 164.74 in Nov '86

• Market moving ever closer to especially massive 165.00 option barriers

• In expiries today, $2 bln at 163.00, supportive, also 163.07-80 $1.6 bln

• Tech support on dips from 163.10 hourly Ichimoku tenkan

• Option-related bids pre-163.00, hourly kijun 162.84, cloud 162.37-46

• Barring MOF-ordered FX intervention, USD/JPY to see new equilibrium on 163

• Related comments , , ,

• Also , on Middle East ,

• US markets , , ,

• On "new" Trump tariffs , for more click on [FXBUZ]

USD/JPY:


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