Traders report a large bid for dollars at the 84.00 level in USD/JPY with stops located just below that level on a break. The market is said to be long options gamma, which helps engender range bound markets as options desks buy USD and dips and sell them on rallies. Explosives moves come when the is short gamma and option desks are forced to buy buy rallies and sell dips, accelerating the moves even further.
QE talk has croaked the dollar in recent weeks and the pound today. Overnight the Nikkei reported the BOJ was considering more QE? The market’s reaction? Negligible.
