• Fresh developments in the Middle East upped geopolitical tensions overnight

• USD bid across board on reports of fresh attacks by both Iran and US

• USD/JPY 160.06 to 160.45 EBS yesterday, Asia so far 160.35-41

• No Japan FX intervention again, difficult for MOF to attack when USD strong

• Market also lacking in volatility with recent moves gradual, sedate

• That said, JPY shorts up large recently, MOF wants to punish speculators

• Talk on rise too BOJ may have to hike more than expected 25 bps next week

• Support from 160.33 hourly Ichimoku tenkan, kijun 160.25, cloud 160.06-14

• Option expiries today 160.00 $1.8 bln, 160.25-45 $1.1 bln, 160.50 $1.2 bln

• Above between 160.70-161.05 total $720 mln, also 161.50 $701 mln

• JGB-US Treasury rate differentials on wide side, 2s @272, 10s 187 bps

• Related comments , , ,

• And , also , on US-Iran

• US markets , , ,

• On the BOJ , for more click on [FXBUZ]

USD/JPY:


USD/JPY nearby option expiries this week:

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