USD/JPY has seen a large bout of profit taking as the Japanese take a 3 day holiday and has seen a large batch of stops hit all the way down to a 119.19 low. The Nikkei has also helped drive it lower as it finished down 279 points at 17450.77.
There was also news from the BOJ that they have reduced their monthly purchase ranges for JGB’s.
The 1 year JGB target is now set about Y100-300b from y220-500b and five years from Y2.4-3.6tn to Y1.8-3.6tn. They’ve raised the lower bound of 10’s to Y1.25-2tn from Y650bn-2.0tn
On the option front today there’s 5.18bn rolling off at 120.00 and 1.29bn at 122.00
It looks like a classic case of a few bearish factors plus thin markets giving the perfect scenario for a blow out. It’s a dip that I’m going to add to my overall long.
