• Across the board USD strength sends USD/JPY back up into 160 handle

• Asia so far 160.15-23 EBS, resistance still felt above 160.20

• Japanese exporters, others good sellers 160.20+, 160.27 cap yesterday

• Flat 100-DMA at 160.03 to work as pivot going forward?

• Eyes too on daily Ichimoku cloud, today 161.29-162.64

• To descend rapidly to a line at 159.59 by weekend, early next week

• Good bounce from hourly Ichimoku cloud yesterday, now 159.75-78

• Hourly tenkan at 160.14, kijun below at 159.95, cloud 159.75-78

• Chock-a-block option expiries on 159 handle, total over $5.4 bln

• Large today between 160.00-20 too, total $2.3 bln, also supportive

• Only smattering of expiries above today to 161.00, $554 mln at strike

• US yields up o/n but JGB-US Tsy 2-year rate diffs off highs to @256 bps

• Market has plenty of G20-related news to digest, geopolitical news too

• Middle East military action, high crude prices to keep inflation focus

• Related comments , , ,

• And , also , on Middle East

• US markets , , ,
USD/JPY:


USD/JPY nearby option expiries this week:


JGB-US Treasury 2-year interest rate differential:

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