USD/JPY has fallen through the 92.00 handle as the buck continues to spiral lower against the JPY but higher versus virtually everything else.
We’ve fallen into a zone where there are few resting orders so what we tend to find are pockets of interest from options-market players who suddenly have hedge exposures that two hours ago they probably had forgotten about. In a low-volatility market like USD/JPY, this can cause massive moves as big flows come into a market that suddenly has lost its range-bound tendencies.
Telephones all over Tokyo are no doubt ringing now as banks try and wake up customrs to see if they want to take advantage of newly cheap USD/JPY. We tarde now at 92.11 after trading as low as 91.82.
