• USD bid across the board on hawkish Fed hike, talk of another in December

• USD/JPY to 156.42 EBS before steadying, talk 156.00 option barriers KO-ed

• Spot off some since, Asia so far 156.30 to 155.94, exporter sales already?

• More Japanese exporter sales eyed into Tokyo fix, looking to lock in 155+

• Most Japanese exporter budget assumptions for fiscal year 155+

• Technically, USD/JPY rally stopped just shy of daily Ichi kijun at 156.64

• Hourly tenkan and kijun now below at 155.66, cloud 154.40-155.02 well below

• Vanilla option expiries today include massive $4.2 bln between 155.40-95

• Also 156.00 $2.7 bln, 156.15-75 total $4.4 bln, lots of gamma plays eyed

• Seems widening of JGB-US Treasury rate differentials peaked Tuesday

• Still wide however with 2s @280 bps, 10s @199 bps at NY close yesterday

• Related comments , , ,

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• Also , on the Fed , ,

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USD/JPY:


JGB-US Treasury 2-year interest rate differential:

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