USD/JPY is well-bid this morning as the market turns its wrath on Japan as the latest purveyor of fiscal malpractice.
Heavy offers are rumored from 91.60 to 91.80 and are being worked as we write. Demand for USD/JPY is rumored at the upcoming 15:00GMT fixing.
3 Responses to “USD/JPY offers in the 91.60/80 zone, traders say”
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AUTOREFRESH 
Hi Jamie…as far as the fix…when you say there’s demand for USD/JPY “at the fix”, does that mean we could see a runup in USD/JPY BEFORE the fix at 11am? Like between now and 11? Or is it bullish for the pair right AT, or slightly AFTER, 11am?
It depends on the amount of demand and how the market is positioned. The fixes are usually the most influential at the end of the month, end of the quarter as asset managers rebalance portfolios.
Generally speaking, unless the market is caught by surprise by the flows at the fixing, they tend to not have much impact, because as you suggest, traders front-run the interest. Things can get interesting when an order comes into the market at the last minute before the fixing and the market is not prepared..That is when you get spillover which can last beyond 15:00…
These are anecdotes that we are hearing in the market. We’d suggest you not trading on one factor, but use these bits and pieces to frame an overall view on the market and understand where particular potholes may lie…
Ok… Thank you very much for the explanation. That definitely helps clarify.