• Last night saw nervous USD/JPY fall back to 162.67 EBS before bouncing

• No doubt market nervous over possible Japan-US joint intervention

• Move down brief however and market bounced back up to around 163 quickly

• Asia 163.07-11 so far with nervousness continuing

• Escalating Middle East fighting remains USD supportive, higher US yields too

• JGB-US Treasury rate differentials wider again, in 2s @282, 10s @189 bps

• Technically, USD/JPY holding above 162.72-94 ascending hourly Ichimoku cloud

• Remained above too when USD/JPY shot down to 162.67 overnight

• Hourly Ichimoku kijun 162.94 at top of cloud, ascending 100-HMA 162.67 below

• Option expiries 162.00-75 $2.1 bln, 163.00 $1.2 bln, 163.20-164.00 $2.4 bln

• 163.00 strikes today likely to exert some gravitational pull ceteris paribus

• Related comments , , ,

• And , , nL1N43O01D[], also

• US markets , , ,

• On Middle East , , for more click on [FXBUZ]

USD/JPY:


USD/JPY hourly:

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