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JPY: USD/JPY Can't Sustain Sub 150.0 Dip, Futures Activity Subsides

JPY
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Yen sentiment has stabilized somewhat, the pair consolidating around 150.20 in latest dealings. Earlier lows were at 149.86, but we couldn't sustain sub 150.00 levels. The yen is still +0.90% firmer for the session. 

  • This puts us near the Fib retracement level highlighted earlier (150.19). The Oct 21 low was 149.09.
  • Futures activity has subsided, see the chart below. The spike was sub recent highs, but still up above norms for that time of day.
  • In the options space, yen has accounted for around 46% of total volumes, per DTCC (just over $2bn).
  • Some of the larger volumes have been for USD calls, albeit at lower strike levels compared to current spot (146-148). We still have some USD puts going through at 140 strikes in decent volume.
  • A rebound in China equities and in Hong Kong is also evident, which may be paring yen gains on crosses at the margin. 

Fig 1: JPY Futures Lower After Earlier Spike 

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Yen sentiment has stabilized somewhat, the pair consolidating around 150.20 in latest dealings. Earlier lows were at 149.86, but we couldn't sustain sub 150.00 levels. The yen is still +0.90% firmer for the session. 

  • This puts us near the Fib retracement level highlighted earlier (150.19). The Oct 21 low was 149.09.
  • Futures activity has subsided, see the chart below. The spike was sub recent highs, but still up above norms for that time of day.
  • In the options space, yen has accounted for around 46% of total volumes, per DTCC (just over $2bn).
  • Some of the larger volumes have been for USD calls, albeit at lower strike levels compared to current spot (146-148). We still have some USD puts going through at 140 strikes in decent volume.
  • A rebound in China equities and in Hong Kong is also evident, which may be paring yen gains on crosses at the margin. 

Fig 1: JPY Futures Lower After Earlier Spike 

Keep reading...Show less