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Holds Back Below Y104.00. Focus on US NFP

JPY
MNI (London)
  • Thursday's reported large Y104.00 option expiry, $3.46bln of USD puts, helped to influence the rate through the figure ahead of yesterday's NY cut, the rate also feeling the weight of general pressure on the USD.
  • USD/JPY touched a low of Y103.67 before recovering through the 1600GMT fix before meeting stiff resistance at Y104.00, closing the day at Y103.83.
  • Goto-bi day (Saturday) RHS interest at the Tokyo fix helped rate recover off an early Asia low of Y103.74 to Y103.99 but again met decent resistance into Y104.00. Rate trades around Y103.85 in early Europe.
  • Support Y103.74/67 ahead of Y103.50. Resistance Y104.00, Y104.20/30.
  • Focus on US Employment Report at 1330GMT.
  • Y104.00-20 area holds the strikes for $646mln of USD puts for today's NY cut.
  • MNI Techs: USDJPY traded lower yesterday but remains above support. Recent price action has defined 103.65, Nov 18 low and 104.76, Nov 4 high as key S/T directional triggers. A break of 103.65 would signal scope for deeper losses and open the bear trigger at 103.18, Nov 6 low. Recent attention has been on the Nov 9 price action, a bullish engulfing candle that signals a potential reversal. Gains above 104.76, Nov 4 high would refocus attention on 105.68.
MNI London Bureau | +44 203-586-2231 | john.webb@marketnews.com
MNI London Bureau | +44 203-586-2231 | john.webb@marketnews.com

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