• USD weaker on a broad front overnight, leads to leg down in USD/JPY
• Unsure whether easing concerns over US trade tariffs warranted
• US yields also easier, Treasury 2s @4.227%, 10s @4.526%, JGB yields firmer
• More narrowing of Japan-US interest rate differentials, in 10s @322 bps now
• USD/JPY from 155.52 to 154.18 yesterday, Asia 154.04-45 EBS so far
• Recent dips have seen support sub-154.00, multiple lows to 153.72 Jan 27
• Daily Ichimoku cloud between 153.37-155.20 providing cushion of sorts
• 200-DMA below at 152.80, 100-DMA at 152.74
• Decent demand eyed at today's Gotobi Tokyo fix, mix of importers, others
• Option expiries supportive too, 153.15-25 total $2.2 bln, 154.00 $1.3 bln
• Topside expiries today 155.00-20 total $613 mln, 155.60-62 $930 mln
• Plenty of US-Trump news again for market to digest
• Related comments , , ,
• Also , Fed-speak , on US economic data
• US markets , , ,
• Trump news , , and
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)