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Option Interest at Y104.00 Exerts Influence Despite Soft Feel

JPY
MNI (London)
  • Dropped back below Y104.00 on reported Tokyo fix supply, one trader noting decent interest to sell AUD/JPY.
  • Rate touched a low of Y103.83 but was seen clawing its way back toward Y104.00 in early Europe.
  • Asian traders suggest support between Y103.70/60, which covers the recent Nov23-18 lows of Y103.68/65 respectively. Expect further support into Y103.50, a break to expose the Y103.20/00 area. Resistance seen at Y104.20/25
  • Nothing outstanding on today's option expiry calendar but Thursday shows $3.45bln of Y104.00 USD puts rolling off (Y103.00 $1.9bln USD puts also) and likely to keep rate anchored close to that Y104.00 level.
  • Month-end and early models have suggested USD sales to be seen at today's fixes but market seen well positioned for this event.
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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