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Tries to Build Above Y106.00

DOLLAR-YEN
MNI (London)

Early Goto-bi day demand saw rate falter at Y106.05 before it dropped back to Y105.87 as supply overwhelmed. However, fresh demand emerged into the dip and took rate back to the Y106.00 area before Europe edged it to Y106.06 at the open. However, rate continues to meet headwinds above Y106.00. If rate can build expected to meet resistance from Y106.22 through to Y106.30(61.8% Y107.05-105.10) ahead of stronger interest between Y106.55/60. Support Y105.70, Y105.50/40. Traders note a lot of option expiriy interest this week at Y105.00, $3.2bln of USD puts roll off Wednesday. For today $1.65bln of USD puts roll off between Y105.25-30, with $740mln of USD puts at Y105.00. Month-end models suggest a neutral signal for USD/JPY.

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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