• News of the two-week Middle East conflict had only limited impact yesterday

• Caution reigns with only a few ships passing through the Hormuz Strait

• Israel's continuing attacks on Lebanon could push Iran to abrogate any deal

• Crude oil prices below $100/brl but still relatively pricey

• USD upside contained by maybe more dovish FOMC as minutes suggest

• JGB-US Treasury rate differentials narrower still, more to come?

• USD/JPY to 157.89 EBS before bouncing, Asia 158.53-67 so far in Asia

• Consolidation on 158 ahead of fresh Middle East news, moves in crude prices?

• Range for now maybe defined by hourly Ichi tenkan at 158.52, kijun at 158.81

• Descending 100/200-HMAs above at 159.34/35, Ichimoku cloud a line at 159.44

• Daily kijun 158.46 just below, daily tenkan 159.18 above

• Option expiries 157.25-45 $708 mln, 158.00 %657 mln, some 158.45-50, 159.00

• Related comments , , , also

• US markets , , ,

• On Fed/Fed-speak , , ,

• On Middle East/Iran , ,
USD/JPY:


JGB-US Treasury 2-year interest rate differential:


NYMEX WTI futures:

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