• USD/JPY settling into its recent, lower core 154.50-156.50 range post-BOJ

• Friday saw trade between 154.85-156.58, Asia so far today 155.59-84 EBS

• Base still in place around ascending 55-DMA at 154.98 today

• Market heaviness in place between 156.50-157.00, offers likely large

• BOJ seen more hawkish than thought, data-dependent, could move in March

• Fed seen less dovish than previously thought, could hold this week, in Q1

• JGB-US Treasury rate differentials narrower, to lessen demand for US paper

• US Treasury 2s @4.260%, 10s @4.596%, JGB 2s @0.712%, 10s @1.222%

• Option expiries today massive 155.00 $1 bln, 155.95-156.00 $2.1 bln

• More at 155.00, at and above 156.00 into month-end, to contain spot this wk?

• Maybe especially so with Australia holiday today, Chinese New Year this week

• Related comments , , ,

• And , , also , on the Fed

• US markets , , ,

• On the US economy , for more click on [FXBUZ]

USD/JPY:


USD/JPY nearby option expiries this week:


JGB-US Treasury 2-year interest rate differential:

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