Today’s forex option expiries for the 10am (15.00 GMT) New York cut 17 January 2018
The market is becoming very focused on the USDJPY barrier down at 110.00. With a new low overnight at 110.19, traders are bracing for a proper attack of the level. There’s still strong bids down there, and stops set if 110.15 breaks, with more if 110.00 breaks. We’ve also a bit more colour on who’s doing what in this pair. The 110 barrier is said to be from Japanese exporters and if they’re busted, it would cancel out a boat load of offers up at 115.00 through to 116.00. Late last year we also noted big barriers up at 115.00, which tied up nicely with the big 110 barrier, almost looking like a DNT play. There’s no confirmation that the two levels are related but piecing the info together, we’re getting a better picture of what’s going on.
While the market seems to be setting up for a big break of 110, there’s also chatter that Japanese insurers and other large institutions will be coming in to buy underneath, which could help soften the blow from a break. This 110 level is setting up to be very big with a lot of action in and around it, so take care.
In other news, the EURUSD 1.23 barrier was busted overnight and with 0.8000 holding tight in AUDUSD, I wouldn’t be surprised to hear of one there too but I’ve no confirmation yet.
Update: No sooner do I hit publish than I get confirmation that there is a barrier in AUDUSD at 0.8000