14 Nov 2013
USD/JPY finds bids ahead of 99.00; optionality in focus
FXstreet.com (Barcelona) - USD/JPY has been drifting lower ever since peaking at 98.80 on Nov 12, with the correction developing at a moderate pace reaching 99.10 as the lowest of the day, while still staring at broken triangle from the rear mirror.
As usual, Japanese data - slightly improved preliminary GDP Q3 - failed to inspire the Yen crosses, with moves largely determined by the Nikkei performance - up 1% at the opening tracking US equities -, which is buoying the USD/JPY at present.
It is worth noting that large vanilla 99.50 strikes in the order of $500 million are due to expire today. According to Haruya Ida from IFR Markets, "large, $600 mln 100.00 strikes also go off, in addition to 100.00 DNT legs, with smaller 98.70, 98.85, 98.90, 99.00, 99.30, 99.80, 100.25 expiries too." Ida tips that the optionality will probably "keep USD/JPY in range on 99 despite sogginess."
As usual, Japanese data - slightly improved preliminary GDP Q3 - failed to inspire the Yen crosses, with moves largely determined by the Nikkei performance - up 1% at the opening tracking US equities -, which is buoying the USD/JPY at present.
It is worth noting that large vanilla 99.50 strikes in the order of $500 million are due to expire today. According to Haruya Ida from IFR Markets, "large, $600 mln 100.00 strikes also go off, in addition to 100.00 DNT legs, with smaller 98.70, 98.85, 98.90, 99.00, 99.30, 99.80, 100.25 expiries too." Ida tips that the optionality will probably "keep USD/JPY in range on 99 despite sogginess."