• An internal model shows USD/JPY should be trading on the 160 handle

• However, spot remains below 160 in part due to yen intervention worries

• USD/JPY has seen a modest 159.30-159.50 range on Monday, on the EBS

• Spot continues to trade above the daily cloud, that currently spans the 156.52-158.87 region

• That shows USD/JPY's technical bias remains squarely on the upside

• 30-day log correlation between USD/JPY and EUR/JPY is above +0.5 (pairs moving in tandem)

• BOJ Governor Ueda's upcoming speech is eyed for rate hike signals

Daily Chart


Correlation Chart


(Martin Miller is a Reuters market analyst. The views expressed are his own)