• Seems market at one on USD/JPY downside sans more FX intervention

• Unconfirmed reports puts two interventions totalling Y10 tln (@$65 bln)

• Downside limited to 155.00 on May 6, pushes up above 157.00 to spur more?

• US TsySec Bessent in Japan from today and will meet the FinMin, PM tomorrow

• Bessent-Katayama meeting in focus, will he be OK with more FX action?

• Bessent has stated need for BOJ to hike rates, will he press again?

• USD/JPY 156.48-96 EBS so far in Asia, in 156.28-158.68 daily Ichimoku cloud

• Resistance from flattening 100-DMA in cloud at 157.35

• Hourly chart shows resistance just above too at descending 157.43 200-HMA

• Dip buying interest from the Mrs Watanabes, other specs still

• Seems many choosing to add to JPY shorts rather than bailing

• JGB-US Treasury short rate differentials tad wider recently, in 2s @253 bps

• Longer rate differentials still on narrow side, in 10s @190 bps

• Massive $2.1 bln in option expiries today at 156.00, 156.65-75 $1.3 bln too

• These likely to help contain action, help support the USD/JPY downside

• Related comments , , ,

• And , also , on US NFP/economy

• US markets , , ,

• On the Fed , , on Bessent/BOJ
USD/JPY:


USD/JPY nearby option expiries this week:

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