The pair closed in NY Tuesday at Y99.48, just off session highs of Y99.53 and able to recover well after the market reacted to an inaccurate Tweet from AP (AP Twitter account was hacked) off a react low of Y98.58. This recovery continued into early Asia with stops above Y99.50 targeted and triggered to take rate on to Y99.76. Move saw momentum quickly fade with rate easing down to Y99.19, the reversal aided by two European names reported to have sold heavily back through Y99.50, with weak longs squeezed out on the move below Y99.30. Market continues to eye the Y100.00 level, though some suggest market looking a little long and could see more squeezing before we see a stronger attempt. Larger Y100.00 strike option expiries Thursday and Friday have some suggesting that this stronger attempt could occur into the end of the week, noting also the BOJ meeting and announcement Friday. Large stops are said to be building above Y100.05. Those option accounts that have been selling ahead of Y100.00 expected to recoup shorts into dips. Euro-yen saw an overnight high of Y129.70, the rate extending its recovery off Y128.19 NY lows, before easing to Y128.86, settling between Y129.20/30 into Europe.
EasyForexNews Research Team