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Large Y104.00 Option Expiry interest in Focus

JPY
MNI (London)
  • A fairly uninteresting session for USD/JPY in Asia, trade confined to a Y104.42/54 range.
  • Some demand interest was noted at the Tokyo fix but this failed to spark much interest.
  • Into Europe and rate has been pressed down to Y104.35 on general USD sell pressure but seen meeting demand interest.
  • Option interest today with the Y104.00 level holding $3.51bln of expiries, $3.46bln being USD puts. Y104.50 holds $1.6bln of mixed expiry interest for today's NY cut, whilst lower down $1.9bln of USD puts roll at Y103.00.
  • US Weekly Jobless Claims at 1330GMT, ahead of Friday's US NFP, in focus. US Services/ISM due at 1445/1500GMT respectively.
  • MNI Techs: Recent price action in USDJPY has defined 103.65, Nov 18 low and 104.76, Nov 4 high as key short-term directional triggers. A break of 103.65 would signal scope for deeper losses and open the more important 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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