• USD/JPY to remain relatively bid on 163 into central bank announcements?

• Range so far in Asia 163.73-78 EBS, follows 163.33-80 range yesterday

• Breaking out of top of tapering hourly Ichimoku cloud between 163.49-74

• Hourly tenkan 163.70, kijun 163.56, ascending 100-HMA 163.50

• Some option expiries today - 162.90-163.00 $527 mln, 163.80-164.00 $652 mln

• Downside looks limited on Japanese importer, other demand

• Foreign investor Nikkei dip-buys, currency hedges likely too

• JGB-US Treasury rate differentials off recent highs but still on wide side

• In 2s, differential @278 bps, in 10s @185 bps

• Market likely on hold for now, summer holidays, lull to limit action again

• Some lessening of Middle East hostilities but market remains nervous

• Related comments , , ,

• And , , ,

• Also on Fed ,

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• On US economy , , on US-Iran
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(Haruya Ida is a Reuters market analyst. The views expressed are his own)