• Pre-weekend USD buys, US yield surge behind USD/JPY push to 158.85 Friday

• USD/JPY still bid, Asia 158.64-87 EBS, looks to remain bid for now

• Holding just shy of 156.37-158.91 daily Ichimoku cloud top

• US yields surged Friday on view Fed could hike towards turn of this year

• Rise in 2-yr ylds sent JGB-Tsy yields wider to @265 bps, widest since Mar 23

• 10-year rate differentials narrower though, based at 178.4 bps Friday TWEB

• Japan FX intervention conspicuous in its absence Friday, to act this week?

• Little in way of MOF-speak too, many expect either, maybe even both today

• MOF maybe viewing Middle East developments, holding on to ammunition

• US-Iran impasse, less hopes now for deal sending crude oil prices higher

• Massive $5.7 bln in option expiries today at 159.00 strike, to help cap?

• Decisive break above could result in major upside volatility

• Usual Tokyo fix Japanese importer demand eyed, specs playing it by ear

• Related comments , , ,

• And , also , on Fed ,

• US markets , , ,

• On US data , on US-Iran ,
USD/JPY:


JGB-US Treasury 2-year interest rate differential:

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