Lumpy options are likely to be the driver of prices up until the cut at 14.00 GMT

As I mentioned on the PPI post, the buck has grabbed some inflationary data with both hands, although putting it into context, a 25 pip move in USDJPY isn’t exactly a moonshoot. What it has done is given option players a reason to hold the price up around some big expiries between 112.40 and 112.65, where a total of 3.21bn is rolling off at the cut.

That’s it for the data, so bar any talking heads (World Bank’s Kim is kicking off the WB/IMF event as I type), there’s a good chance we’re going to ping pong around these levels into the expiry, and it might get a bit choppy.

USDJPY 15m chart 12 10 2017

USDJPY 15m chart 12 10 2017


Ryan Littlestone

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