Further to my regular option expiries post we're seeing some real evidence of impact on prevailing price action
USDJPY has large contracts rolling off at 122.00 and given the resistance so far we can assume they are being protected
Currently 121.91 after 121.95 highs
EURUSD also has some lumpy interest at 1.0800,1.0850 and 1.0900. Currently 1.0873 and going nowhere fast all morning which tells its own tale too, regardless of NFP shadow
So what, I hear you ask. We've got NFP data coming up that could take them out
Ah, but these are "vanilla options" and that means that they are still valid until the stroke of expiry at 15.00 GMT
I know there are non-believers amongst you but having had close association with expiry flows in my interbank days I can vouch for their potential impact as I demonstrated to those willing to invest in our recent online ACT courses.
In any case, keep them in mind. It can't do any harm to add the info to your decision making process. Can it?
For more info on trading expiry flows read this
