• USD/JPY slid to 158.27 EBS yesterday but has since rebounded to 159.31

• Asia so far 159.05-26, tad better bid on caution ahead of weekend

• Hopes still for progress in Middle East talks but nothing assured

• USD/JPY back above descending hourly Ichimoku cloud between 158.91-159.03

• In area of 100 and 200-HMAs at 159.14 and 159.12, respectively

• Some option expiries in area today, $665 mln between 158.95-159.20

• Could exert some gravitational pull, help contain spot action

• Japanese importer buys eyed again at Tokyo fix, exporters 159.30+?

• JGB-US Treasury rate differentials in stasis just above recent lows

• This despite fading expectations of a BOJ hike this month, focus now on June

• Japan FX intervention still possible given recent MOF jaw-boning efforts

• Totan Research/ICAP April hike probability off to 20%, June up to 58%

• Related comments , , ,

• Also , on Middle East ,

• US markets , , ,

• On BOJ Ueda/MOF Katayama G7 talk ,

• On Fed , , US data
USD/JPY:


JGB-US Treasury 2-year interest rate differential:

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