That pop in US bond yields managed to carry USD/JPY through stops above the area of resistance in the low 80.30s and onto a session of high of 80.425 before stalling. Bulls will want to see dips limited to the 80.20/30 area, otherwise fears will grow that we’ve had a false topside breakout.
Traders noted earlier in the week that there had been a good deal of interest in USD/JPY options, mainly in the shorter-dates. When the market is long options, they tend to be buyers on dips and sellers on rallies which promotes lots of expensive time-decay…
