• USD/JPY saw a mini-rally to 159.40 yesterday but still very much rangebound

• Asia so far today 158.96-04 EBS, off high yesterday and again around 159.00

• USD/JPY on hold in area all week with demand on dips, offers on rallies

• Seems MOF FX intervention threat helping to cap upside

• Japanese importer busy at Tokyo fixes, speculator demand on dips too

• Rise in Nikkei, foreign buys and hedging of currency risk also supportive

• Daily Ichimoku cloud top working as pivot again, cloud 156.37-158.90 today

• Hourly cloud also pivot of sorts, currently below between 158.83-92

• Massive option expiries in area today, 157.50-158.00 total $3.9 bln

• Between 158.35-97 total $7.2 bln, between 159.00-10 $1.8 bln

• Expiries more supportive than not, possible barriers at 160.00, 161.00

• JGB-US Treasury rate differentials tad narrower again, even in 2s

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USD/JPY:


USD/JPY nearby option expiries into next week:


Nikkei 225:

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