Swing high from yesterday stalled the rise today
The USDJPY moved higher with a generally higher dollar today (although the pair moved lower in the Asian session). The rise took the price back above an old trend line (again) but stalled at a topside trend line.
The weaker than expected PPI data sent the USDJPY lower and back below that old trend line at 111.08. The low reached 111.009. There are a lot of options expiring at 111.00-05 today (1.9B). That may keep the pair around the level.
I don''t know if there will be someone out there that will squeeze the option sellers (who will look to hold the level around the 111.00 level), but generally speaking, the price tends to trade above and below the strike level into expiration. With a low of 111.009, it suggests that may be the case until the 10 AM ET option expire time.
