USD/JPY sits at 86.40, down slightly in early European trade. As some had suspected Fed’s Bernanke did the pairing no favours yesterday, with his downbeat assessment of the US economy driving funds into the safe haven yen.
Talk buy orders 86.30/40 before stops through 86.25. Talk of 86.00 barrier option interest with bids seen around said level, including Japanese importer, sovereign interest. More stops said to lie just beneath 86.00.
On topside sell orders noted 87.00/10. Not sure where stops clustered on topside. Probably not that close. Possibly up around 87.60/70.
