• USD/JPY continuing to consolidate on 162 handle into US NFP/jobs report

• Asia 162.49-58 EBS so far, 40-year high of 162.84 was recorded yesterday

• Downside continues to be limited with demand strong

• Japanese importers whose option barriers knocked out, retail/NISA flows too

• Foreign investors buying Japanese stocks continuing to currency hedge too

• Offers still ahead of 163.00 but stops eyed above with some KOs tipped

• Threat of Japanese FX intervention still, thinking may come post-US jobs

• MOF may be targeting thinner markets then, on US Independence Day holiday

• Tech support from 162.49 hourly Ichimoku tenkan, cloud 162.19-40 below

• $2.4 bln in option expiries today on 162 handle, to help contain spot

• Large expiries above and below too

• Hawkish Fed Warsh comments, US short yields up, JGB-US Tsy rate diffs wider

• In 2s, differential back out to @278 bps, 10s perk up too to @176 bps

• Related comments , , ,

• Also , on Fed Warsh-speak

• US markets , , ,
USD/JPY daily:


USD/JPY hourly:


JGB-US Treasury 2-year interest rate differential:

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