• USD/JPY fell to 146.94 EBS Friday before bouncing later to 148.20

• Off since, Asia so far 147.87 to 147.42, to test 146.90-147.00 support?

• Feel-good effects from bounce in US yields on solid jobs report fading

• Many fresh policy pronouncements from Trump over the weekend, mkt digesting

• FOMC Chair Powell noted possible tweaks to Fed dot plot, pause to continue?

• Yield on US Tsy 2s to 4.023% Friday but looks capped ahead of 4.024% 200-HMA

• US Treasury 10s peaked at 4.328% Friday, off since to 4.305%, 2s @4.004%

• JGB yields remain firm, at recent highs, 2s @0.857%, 10s @1.534%

• USD/JPY moving lower with daily Ichimoku tenkan currently at 149.12

• Plenty massive option expiries in area today, to provide gravitational pull?

• 146.85/147.00 total $737 mln, 147.40-75 total $2.1 bln, 148.00 $1.8 bln

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USD/JPY:


JGB-US Treasury 10-year interest rate differential:


USD/JPY nearby option expiries this week:

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