• USD/JPY still relatively bid, Asia 157.70-86 EBS so far, yesterday 157.56-93

• Obvious risk of Japan FX intervention keeping it below 158.00 for now

• 158 seen new 160, Japan FX action eyed from around this level, above

• On hold around middle of 156.33-158.82 daily Ichimoku cloud, 100-DMA 157.40

• Rise in US yields post-PPI data, JGB-US Treasury short rate diffs wider

• Rate differential in 2s to @259 bps, in 10s still narrow at @187 bps

• Chunky option expiries to upside today, 158.00 $880 mln, 158.30-60 $2.8 bln

• To the downside, only large between 156.30-50 total $1.2 bln

• Market focused on Trump-Xi talks, whether they help break US-Iran impasse

• Related comments , , ,

• Also , on US PPI , on Trump-Xi

• US markets , , ,

• On Fed-speak , , Warsh confirmation
USD/JPY:


JGB-US Treasury 2-year interest rate differential:


JGB-US Treasury 10-year interest differential:

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