• USD/JPY as high as 162.67 EBS overnight, Asia so far 162.54-66, bid

• Seems Japan intervention threats increasingly falling on deaf ears

• No doubt lack of action to prompt fresh moves towards 163.00 test

• That said, intervention threat real, some say could come after US jobs data

• MOF maybe considering impact of jobs data on rates, FX, other markets

• Barring such action, USD/JPY looks to remain bid, demand strong

• Japanese importer demand stronger now with 162.00 option barriers KO-ed

• Large option expiries too below between 161.90-162.10 today, total $1 bln

• Retail including NISA demand, foreign investor hedging of stock buys too

• JGB-US Treasury 2-year rate differentials @273 bps, off recent wides

• Rate differential in 10s narrower still, down to 167 bps overnight

• Related comments , , ,

• Also , on US economy

• US markets , , ,

• On Japan intervention , BOJ
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(Haruya Ida is a Reuters market analyst. The views expressed are his own)