• USD remained better bid yesterday, USD/JPY held on 159 despite greater sales

• USD/JPY to 159.78 high yesterday, Asia so far today 159.49-64 EBS

• Daily Ichimoku kijun at 159.59 pierced but spot still in area

• 100-DMA 160.01 above, still technical resistance, Ichi cloud 158.92-161.38

• Japanese exporters no doubt looking to sell ahead of 160.00

• Highest budget assumptions for 160 this fiscal year, must sell there/above

• Many large companies already have sales 160+, OK for FY first half Sept-end

• Threat of Japan FX intervention back above 160 cannot be ignored either

• With a BOJ hike eyed in September, maybe again in December, upside limited?

• JGB-US Treasury rate differentials may have based for now but still heavy

• In 2s differential to @246 bps Monday, yesterday @250 bps, 10s @179 bps

• Tech support from 100-HMA at 159.37, hourly Ichimoku cloud 159.10-33 below

• Option expiries today also likely supportive, $1 bln between 159.00-25

• Related comments , , ,

• And , , also

• US markets , , ,

• On US data/economy , , US-Iran
USD/JPY daily:


USD/JPY hourly:


JGB-US Treasury 2-year interest rate differential:

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