ASIA: Government Bond Issuance Today

• Bank of Thailand to Sell THB65 bn of 91-Days Bills.

The USD/JPY range overnight was 153.13-153.64, Asia is currently trading around 153.50. USD/JPY has found some demand and is now consolidating above 153.00, the US returns tonight and so we should hopefully see clearer price action. This price action does look messy for those leveraged Yen shorts but I still believe dips back toward the 149-152 will probably provide solid support again should we see it, until then it looks like we chop around albeit with a heavy tone. On the day, the first resistance is back towards 153.75-154.25 and then the 155.00-156.00 area as the market pares back its overextended USD longs and looks for another base to form from which to potentially move higher again.

• MNI BRIEF: BOJ Ueda: No Request On Policy From Takaichi. Ueda told reporters after meeting newly- reelected PM Takaichi that he would not elaborate on the contents of the meeting but added that the pair met to exchange various issues, reminding that they do meet periodically.
• “Investors are trying to gauge whether the PM will try to slow the BOJ’s rate-hike path to protect growth or press for tighter policy to bolster the yen.” - BBG
• Options : Close significant option expiries for NY cut, based on DTCC data: 151.00($986m), 156.00($1.87b). Upcoming Close Strikes : 153.00($2.73b Feb 19), 155.00($1.43b Feb 19),158.00($1.21b Feb 20) - BBG.
• The USD/JPY Average True Range(ATR) for the last 10 Trading days: 142 Points
• Data/Event : Tertiary Industry Index MoM 

Fig 1 : USD/JPY Spot Daily Chart

Source: MNI - Market News/Bloomberg Finance L.P

Source: Bloomberg Finance L.P./MNI