• USD surged across the board yesterday on hawkish Fed expectations

• USD/JPY as high as 161.81, Japan's MOF conspicuous in absence on FX action

• USD/JPY highest since 161.96 recorded on July 3, 2024

• Asia so far today 161.18-41 EBS, 161 handle the new 160?

• Threat of intervention still especially ahead of massive 162.00 option KOs

• Break above 162.00 could see USD/JPY shoot up towards 165.00

• Even more option KOs tipped at this level, Japan importers stops above both

• In expiries, little nearby today but massive Monday - 160.00, 161.00, 163.00

• JGB-US Treasury rate differentials wider in 2s at @277, 10s still @183 bps

• Japanese importer demand likely strong at pre-weekend Tokyo fix

• This especially with Gotobi falling on Saturday, USD/JPY downside limited?

• Related comments , , ,

• Also , on US economic data ,

• US markets , , ,

• On foreign holdings of US debt ,
USD/JPY:

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