• USD better bid against other major currencies but USD/JPY down hard

• Move down in Asia PM trading to 159.44 before bouncing to 159.92

• Move down attributed to news of Japan GPIF portfolio shifts

• Another wave of selling later, plunge to 158.21 EBS on rate check rumours

• Some bounce since but upside now seen limited, Asia so far 158.67-93

• $1.6 bln in option expiries today at 159.00 strike to help cap upside

• To downside, 158.00 $761 mln, total $1.7 bln between 157.00-85 too

• Technically, 200-DMA at 158.47 today briefly pierced, back above now

• This 200-DMA a likely pivot possibility going forward

• JGB-US Treasury rate differentials narrowing again, 2s around 253 bps

• JGB 10s up to 3.0% and resulting in shift in foreign investor thinking

• More hawkish BOJ stance helping, hike this month seen as almost a given

• BOJ Takata-speak yesterday suggested new dawn of sorts in timing of hikes

• Many players also reassessing JPY-funded carries

• Japanese importer buys to continue but exporters will help cap rallies

• Related comments , , , also

• US markets , , ,

• On US economy , , , US-Iran

• On BOJ Takata-speak , for more click on [FXBUZ]

USD/JPY daily:


USD/JPY hourly:


JGB-US Treasury 2-year interest rate differential:

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