• Yesterday saw USD/JPY dip to 156.99 at the NY open before steadying

• Fed Williams dovish but others more hawkish

• US economy still chugging along , US yields remain high

• That said, Fed October rate hike expectations off, now 50-50 vs 70% prior

• USD/JPY back to a range on 157, Asia so far 157.24-46 EBS

• In wider range between 156.64 daily Ichimoku kijun, 200-DMA at 158.48

• Back into descending and tapering hourly Ichimoku cloud between 157.23-72

• Ascending 200-HMA in cloud now at 157.54, 100-HMA above at 157.78

• Lower oil prices tad yen supportive despite ongoing Middle East conflict

• Massive $1.4 bln option expiries at 157.00 USD supportive?

• Other nearby expiries today 157.50-90 total $712 mln, 158.00 $918 mln

• On 156 handle, total $1.1 bln in expiries - a collection of smalls

• JGB-US rate differentials still wide, in 2s in higher range, 10s wider

• Month/quarter/Japan fiscal half-ends today, Tokyo fix flows likely large

• Related comments , , ,

• Also , on Fed-speak

• US markets , , ,
USD/JPY:


USD/JPY nearby option expiries this week:


JGB-US Treasury 10-year interest rate differential:

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