• USD/JPY holding bid, refuses to go down, however still capped pre-162.00

• 162.00 option KO defence strong, Japan exporter month/quarter-end sales too

• That said, month/quarter-end Japanese importer, retail-NISA flows too

• Specs also continuing to bet USD/JPY goes higher, large stops 162.00+

• Without Japanese FX intervention, 162 break to see swift move towards 163

• Range so far in Asia this morning 161.91-97, 161.97 high yesterday

• Nearby vanilla option expiries today 161.25-50 $750 mln only

• 162.50 strikes does see $2.2 bln however, below 160.25-161.00 $1.8 bln

• JGB-US Treasury rate differentials tad narrower, in 2s @270, 10s @173 bps

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