• Re-flaring of Middle East tensions a reason to remain long USD

• Japan MOF new tack, pressure on GPIF to buy Japan JPY supportive

• Seems USD/JPY back to stasis on these two opposing influences

• Equilibrium of sorts below YTD high of 162.84 on July 1

• 162.84 also 40-year high, highest since 163.36 in December 1986

• USD/JPY 161.67-162.07 EBS so far in Asia today

• New equilibrium around 162.00? Range Friday 161.28-162.43, inside day?

• Daily chart shows USD/JPY mostly above 161.66 Ichi tenkan, kijun 161.17

• Hourly chart interesting with cloud now descending, currently 162.07-17

• Spot to break back into cloud? Trade back above? Or stay capped ahead?

• Now descending 200-HMA 162.02, also descending 100-HMA 162.12 above

• In option expiries today, total $2.2 bln above between 162.00-30, to cap?

• Below total $2.4 bln between 161.00-75, to help limit downside?

• Some decline in IMM CTA JPY shorts but positions still large

• Interesting twist in JGB-US rate diffs, narrower in shorts, longs widen

• Interest rate differential in 2s to @272 bps while in 10s to @176 bps

• Related comments , , ,

• And , also , on Japan's GPIF

• US markets , , ,

• Crude oil at Asia start , on US-Iran

• On Fed , for more click on [FXBUZ]

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)