As the old adage goes: bull markets rise on escalators and correct on elevators.

Why? Because the market gets too crowded and when a correction hits, it shakes out the late longs and starts a squeeze.

USD/JPY is now 100 pips from the 103.38 high touched in Asian trading. The pain hasn’t spread meaningfully to GBP/JPY and EUR/JPY but that could be the signal for a larger correction.

For USD/JPY, there is some demand at 102.20/25. There are about $480m in options expiring at the top of the hour and slightly more at 102.00. That’s a decent size but not enough to counter the whims of the stock market.