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Spillover USD Buying Tips USD/JPY Toward Overnight Highs

JPY
  • Break lower in GBP/USD extends, helping trigger a further wave of USD buying across G10. USD/JPY is now re-approaching the overnight (and cycle) highs at 144.25. Price also now north of yesterday's highs at 144.17.
  • Chief currency diplomat Kanda spoke again overnight, reiterating the stance that the authorities would watch FX rates with urgency, and that appropriate measures would be taken if necessary.
  • Option interest for today's NY cut seen at 144.00 ($255mln) and Y144.80 ($240mln) - ahead of the cut today BoJ's Ueda appears alongside Powell, Bailey and Lagarde at 1430BST/0930ET.

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