• Hot US CPI data raised US yields and spurred talk of maybe a 50 bp Fed hike

• Such talk augmented by Fed's Waller who said 50 bp hike should be considered

• USD/JPY rallied to 158.85 EBS on back of this talk, Asia so far 158.69-71

• USD/JPY back above 157.13-158.42 daily Ichimoku cloud, near 158.70 200-DMA

• Descending 100-DMA just above at 159.00, FX intervention risk too 159.00+

• Break above 159.00 bullish however, pair not above 100-DMA since September 2

• Option expiries today larger below than above

• Between 157.00-158.00 total $5.6 bln+, between 158.95-159.00 total $623 mln

• JGB-US Treasury rate differentials widen some, 2s @277, 10s @218 bps

• Related comments , , ,

• Also , more on Fed , on US CPI

• US markets , , ,
USD/JPY:


JGB-US Treasury 2-year interest rate differential:

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