Options are becoming the big feature in yen pairs
Mike's added the barriers noted yesterday to the order board for EURJPY but there's also some in place for USDJPY
First, the bids at 111.50 are said to be of the official or semi-official kind. The overnight selling down to the lows came from leveraged names and the news that the 111.50 might carry some big weight might be part of the reason for the strong bounce. That bounce has reversed so those bids might be tested at some point.
On the barrier front, 110.50 and 110.00 are the two levels we've heard about. There's bids and stops surrounding these too, and there's large stops in place around 109.80/85 if 110 gets smoked.
In EURJPY there's still large stops in place around 121.80/90.
It's probably a bit early to see the Japanese FY end flows starting but don't discount that entirely, especially with the option action picking up. I wrote about the effect these flows can have on FX in a post yesterday.
