• USD broadly bid on possible Oct Fed rate hike view, USD/JPY on pre-BOJ hold

• USD/JPY range yesterday 155.34-156.30 EBS, 155.88-156.14 so far

• Could be inside day till the BOJ announcement, maybe into Gov Ueda presser

• For the yen to regain upward momentum, very hawkish BOJ hike needed

• JGB-US Treasury interest rate differentials wider still overnight

• In 2s to 287 bps before fall back to 283 bps, 10s 201 bps to 199 bps

• Technically, USD/JPY holding below flat daily Ichimoku tenkan at 156.64

• Hourly chart shows support at 155.20-66 Ichimoku cloud, 100-HMA 155.08 below

• Option expiries today include 154.00-50 total $1.2 bln, 155.00 $5.5 bln

• Also 155.50/75 total $1.3 bln, 156.00-10 $1.2 bln, 156.50/157.00 $2.4 bln

• These expiries likely to help contain spot action maybe even after BOJ

• Related comments , , ,

• And , , also

• On BOJ , , on US pressure

• US markets , , ,

• On US data , for more click on [FXBUZ]

USD/JPY:


Japan's terminal rate:

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