• Risk mood remained upbeat overnight with Wall Street again closing higher

• Better risk sentiment reflected in FX, USD down across board

• USD/JPY 159.43 to 158.61 yesterday, Asia so far today 158.74-88 EBS

• JPY gains more limited than other majors however, USD/JPY downside limited

• JGB-US Treasury rate differentials narrowing but BOJ expectations shifting

• Market now divided on whether BOJ will hike this month or June

• Large option expiries nearby today to help limit USD/JPY downside too?

• Between 158.00-55 total $3 bln, between 158.65-85 $1.8 bln

• Above another $1.7 bln between 159.00-50 today, all to help contain spot?

• Japanese importer demand likely good at today's Tokyo fix, exporters 159.00+

• If upbeat risk mood prevails however, JPY could strengthen more post-fix

• Related comments , , ,

• Also , on Iran war

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• Also , on US economy , ,
USD/JPY:


How interest rates have changed among G10 central banks:

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