USD/JPY volatile, off hard into LDN, up into NY, off again
USD/JPY volatile yesterday, to 141.65 post-Tokyo, then up to 143.91 in NY
Pair off some since, Asia so far 143.69 to 143.38 EBS, on heavy side
Looking to break back below 143.41-144.26 descending hourly Ichi cloud
200/100-HMAs 143.56/72 in cloud, 55-HMA below at 143.28, hourly kijun 142.78
BOJ seen data-dependent, Fed Nov rate cut expectations off to 25 bps
Rates and rate differentials shift some, US yields firm up, Japan yields too
Some volatility but rate diffs still in narrowing mode? To help cap USD/JPY?
Some chunky option expiries in area on 143, to help contain action
143.00-15 $619 mln, 143.40 $931 mln, 143.80-90 $918 mln, 144.00 $510 mln
145.00 likely cap in any case? $2.2 bln in expiries tom, Thurs to keep lid?
Some Japanese buys into Tokyo fix, exporters on rallies
Related comments nL1N3L6030, nL1N3LC0OB, nL1N3LC0D1, nL1N3LB038
Also nL1N3LC0WG, on the Fed nL1N3LC0XX
US markets nL1N3LC0UI, nL1N3LC13E, nL4N3LC12L, nL1N3LC01R
For more click on FXBUZ
USD/JPY: https://tmsnrt.rs/3N3dyc6
USD/JPY nearby option expiries this week: https://tmsnrt.rs/3BpzBXL
JGB-US Treasury 2-year interest rate differential: https://tmsnrt.rs/4enEgIx
(Haruya Ida is a Reuters market analyst. The views expressed are his own)
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