• Risk-off sentiment on stock market plunges, some repatriation, haven plays

• All worked to help JPY rally, USD/JPY 149.25 to 145.19 EBS yesterday

• Asia so far 145.55-146.25, some profit-taking on shorts, bargain buys?

• Seems profit-targets for number of shorts completed, pre-Friday adjustments

• Specs will likely wait for fresh bank, other views before re-entering shorts

• Down still likely path of least resistance on trade war fears, risk-off mood

• US yields down too, rising talk of Fed rate cut on stagflation concerns

• Treasury 2s @3.688%, 10s @4.047%, yield diff with JGBs at recent narrows

• USD/JPY lowest since Oct 2, low then 143.45, on way up from 139.58 Sept 16

• Support from around 145.00, some talk of possible option barriers at strike

• Vanilla expiries today few, far between - 145.75 $300 mln, 147.00 $1.4 bln

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USD/JPY:


Yield on US Treasury 10s:


S&P Index:

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