• USD remain very much bid specially given fresh concerns over US-Iran

• USD/JPY as high as 161.93 EBS overnight, Asia so far today 161.55-62

• Japan FinMin Katayama spoke to US TsySec Bessent on the yen rate

• Some volatility on this news, USD/JPY from high o/n to 161.06

• Japanese intervention could be imminent, US Treasury to help?

• Some action may be necessary with Japanese importer 162.00 option KOs close

• Break above and stops would likely see another USD/JPY surge

• This is something Japan's MOF would like to avoid, more option KOs above

• Technically, resistance at 161.96 July 3 '24 high, then 162.00, 163.00

• Then 163.36 high dating back to December 1986, 164.74 in November 1986

• Hourly chart shows support from 161.14-31 ascending Ichimoku cloud

• As to vanilla option expiries today, some 161.00-20, 161.25 $945 mln

• Rise in US short yields as market discounts Fed hikes

• JGB-US Treasury 2-year rate differentials wider to @280 bps, 10s @180 bps

• Related comments , , ,

• And , also , on FX action ,

• US markets , , ,

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