I put this in the comments section of another post – they are pertinent here too:
Over the course of the upmove Tokyo interest has seemed to be the big driver – partially because there is good USD/JPY liquidity there, of course. Late last week Japanese importers were a big factor in the buying, and macro-related funds (there’s been a big shift in sentiment towards USD/JPY by the funds). It looks like it still has room to go. The next big event is the BOJ meeting on the 21st and 22nd of January – thats a week and half away, still plenty of time for higher in USD/JPY before maybe ‘sell the fact’ comes into play after the meeting…
For today:
Topside:
- There’s not a lot of selling interest (only for those with a death wish at the moment). 89.50 was a barrier option, but just like the 88.50 barriers, the USD/JPY has blasted through.
Downside:
- Buying now 89.35/45
- More at 89.25/30
